Kardec Trader explains how to short pre-market runners at market open. The strategy waits for a stock that's up 100% before market open to consolidate, then shorts at the open, lets it squeeze briefly, and takes profits when it fades back to pre-market support levels.
We've got a pre market runner, let's say consolidates here for about an hour, goes up some more, consolidates a bit and then at the open it's still at 100%. So this would fit the criteria of a gap of short. You want to short something up 100% because it statistically is going to come down. We short the open, it squeezes on us a little bit but eventually fades and then it comes back down to this prior pre market support area. So nowadays I would look to take profits here because it is at a prior support level and it's likely to bounce. So why not take, you know, half the position off and then look to recycle at this prior resistance area because once it cracks this level support becomes resistance. So you can re short here, put that half that you took, put it back on and then look to catch a fade back down. So you have to anticipate the balances, the moves and this way you can profit more off of a certain range versus looking for one directional moves all the way down which are not as common anymore.
