The Secret to Spotting Gap-Ups Before They Happen

I still remember the first time I saw a stock go nuts into the close. 

It was like watching a rocket take off at 3:45 p.m., and all I could think was, “Should I buy this right now? What if it gaps up? What if I miss it?” 

That excitement is something all traders feel. 

But I’ve learned that not every late-day runner is worth the chase.

Afternoon and overnight runners can be goldmines, yes — but they can trap you if you can’t tell which ones have real strength and which are just noise. 

Want to be able to recognize the difference consistently? 

Here’s exactly how I do it. 

If It Looks Like a Duck… 

An afternoon runner is just a stock that starts making a strong move later in the day, usually after 1 or 2 p.m. Eastern time. 

Sometimes big news lights it up, like an earnings report, a press release, or a high-profile deal.

Other times, it’s just momentum building from earlier in the day, maybe a reaction to social media hype. 

Whatever the catalyst, when a stock starts ramping in the afternoon and holds into the close, it could gap up the next morning or become an overnight runner.

The key word here is “could.” 

Just because a stock is moving late doesn’t mean it’s going to follow through. 

To get a better idea of how to treat one of these, ask yourself a few questions: 

  • Is real volume coming in? 
  • Is the price action clean, or is it all over the place? 
  • Is the stock breaking out of a range, or is it just bouncing around aimlessly

If an afternoon stock is near the high of the day, it’s a good sign that buyers are still in control heading into the close.

Cut Static Like Butter

But even when you know what to look for, it’s not always easy to spot the best setups in time. 

After all, hundreds of stocks are moving in the market on any given day. 

That’s exactly why I built a scanning tool that helps cut through all that chaos to pinpoint potential winners. 

Power Signal Indicator flags when a particular stock is showing unusual buying activity that could lead to a big next-day move. 

The platform isn’t based on hype or random alerts but on the technical signs I’ve seen play out countless times.

When that alert goes off and everything else lines up — strong volume, a news catalyst, clean chart, solid close — that’s when I start mapping my next move. 

I think about my entry, my size, and my risk. Then I ease into things small, especially if I’m planning to hold overnight. 

If a ticker gaps up the next day, awesome. If it doesn’t, I’m not in so deep it hurts. 

That’s how you stay safe while still giving yourself a shot at a big win.

So, if you’d like to catch more afternoon and overnight runners the smart way, the Power Signal can help. 

In the meantime, keep studying and stay patient. 

And when the right setup comes along, don’t hesitate to strike.

Jack Kellogg

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