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Harley....
There are lots of different theories around regarding stock prices and
trading. What you said about $100 stocks is pretty much so....or at least
that is what I have heard. I do think it is more a matter of liquidity as
far as the institutions are concerned. They like to have the ability to move
in or out of a position with relative ease and most stocks in the $100 price
range are very liquid and permit them to do so.
How about this theory....if a stock breaks above $80 and closes there it will
go to $100. In my experience, this appears to be so over the long term.
Here are a few dealing with price:
1. Never buy below the opening price
2. It is okay to buy below the open so long as it traded above the open
earlier
3. By noon, if stock never traded above the open price, do not buy that
day.
Just some food for thought....
Jerry
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