Gilligan's Island

Premise:

short-term gap reversals.

For Buys

1. A stock must gap open to a new two-month low. The bigger the gap the better.
2. The stock must close at or in the top 50 percent of its daily range and equal to or above the opening.
3. The next day only, buy 1/8 above today's high.
4. Risk 1 point.
5. Carry the position overnight if it closes strongly.

For Short Sales

1. A stock must gap open to a new two-month high. The bigger the gap, the better.
2. The stock must close at or in the lower 50 percent of its daily range and equal to or under the opening.
3. The next day only, sell the stock short 1/8 under today's low.
4. Risk no more than 1 point.
5. If the stock collapses, carry the position into the next morning. It will probably follow through.