Speaking of filling gaps, I mentioned a week ago Monday that Travelzoo (TZOO) looked poised to short for those who were nimble as the stock was extremely extended over any major support level. [Apr 25, 2011: Travelzoo Now 36% Over the 20 Day Moving Average]
When I wrote that the stock was just under $103. The next day it opened at a similar price and proceeded to implode down to the mid $80s. It has been down each and every session since then (6 days) and now trades in the $73s. Now to be fair, if I had listened to my own advice and put on any puts or shorted the stock (if I could locate it), I would have covered well in advance of today. Heck a small portion of a portfolio (1%) allocated to puts on a stock that falls from $103 to $85 in one session would bring a wonderful amount of return for very little risk capital offered up for the trade.
Bigger picture it is interesting to see a whole host of the momo trades falling apart the past 1-1.5 weeks. One wonders if that is signaling something else, as the general indexes hold up quite well.