The Piercing Point trade says the second day should gap down below the previous days’ LOW. Then, it’s better to be below the Close & Low. Can the first be possible without the second? Did you mean previous days’ CLOSE?            

Do these trading techniques apply to ETFs and Indexes?          - Nick G.

A:  Hi Nick – to your first question – YES! – you are correct!  On page 191, it should state that the open gaps down below the previous day’s CLOSE rather than the LOW.  Again, ideally the gap down will capture both the close and the low, but only the close is required.  Great catch!  To the second question, these techniques do apply equally well to index, sector and industry ETFs.  Be sure to watch for adequate liquidity since many ETFs are so thinly traded that you would likely pass on them as good trade opportunities.  This, of course, is not an issue with the major index ETFs (DIA, SPY and QQQQ).