I normally do not advocate buying after a gap up, but if you are comfortable, this would be an exception. Most hammer reversals will have a very nice 3 day rally (this may include all 3 days or sometimes 2 of 3, but by third day, there is usually a very nice profit). More succeed than do not. From previous history, when pricing previously skid down the lower BB and finally reversed, gains were especially nice.

This is not out of the blue, we were expecting this, so this is more of a confirmation, than a signal waiting for confirmation. It is 9:08 right now, and we have all major indexes participating, including Nasdaq, Russell 2000, inverse volatility, etc. Additionally Dr. Silver says buy and is up over 2% predawn. I like the odds a lot. Don't wait to buy a dip, just do it now. Reversals do not always offer dips and when they do, they are not that significant.

Lastly, do your own homework on this to confirm what I say. Never buy something only because I said it, but I do feel very confident with today and the next two days as well.

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