Its the rule of thumb i use, the news has to be so significant that it creates the need for a geniune re-rate in the company. You often see them in shells as they vend good projects in them. Look at all the pilbara gold plays, they've all gapped up because that area is hot and its significant news to have something there, thats a mix of significant news and hype, who knows once the heat dies off around the area the ones that are just riding the wave may well come back and fill. But its significant enough right now to call it a break away till they prove something, if they dont then it will most likely fill eventually. MXC was major funding, i would call that a breakaway gap and be very suprised if it fills.
See the difference in the significance of the news compared to CR8, we all knew about AMP, we where just waiting for it to happen. So it was already priced in, plus once you've had names like CHUBB and Nationwide the calibre of AMP is eclipsed by them because the market always wants bigger news and more, and the AMP announcement was quite shallow which didnt help its case for a genuine re-rate. They could have given us more to get our mouth watering, in saying that i saw the gap and i still questioned myself and didnt sell, now im watching it fill and god it looks so obvious now but hindsight is a beautiful thing and ide missed the oppurtunity. Should have been ruthless and dumped but it go's against your human nature to do that, gotta be robotic sometimes. Its all about trading rules - if its not a breakaway gap, sell!! No question!! But you still doubt yourself, guess it comes down to discipline.
