Dummy Gapper Long - LKQ Corporation (Public, NASDAQ:LKQX) and Applied Materials, Inc. (Public, NASDAQ:AMAT)

Got a late start to my trading day and most of the good gapper setups passed me by. However, my scan came up with LKQX which was basing at the ORH on huge volume. I decided to place a buy stop order above the third bar high when the rising 5 period ema seemed close enough for this thing to take off and just after NR7. It didn't quite go as planned, but the next red consolidation bar held the ORH. It finally took off and made a nice move towards the 38% Fibonacci extension of the previous day low to the ORH. It stalled about 10 cents shy of the target and started printing red so I closed the position. The rationale for closing the position is that a normal retracement of 38% would bring price very close to my entry.

AMAT was trading in sympathy with NVLS on its strong earnings as were several leading semi stocks ahead of INTC earnings.

After retracing just less than 38% of the ORL to the morning swing high, AMAT carved out a perfect green hammer, signaling a reversal was imminent. I took a dummy long above the red line. After taking out the morning swing high, AMAT picked up the pace, and eventually reached the 100% Fib.extension of the PDL to the ORH. I closed my position as price came into the $22.00 level.