Nokia is a $49 billion company that trades on the NYSE - as an ADS (American Depository Shares). Nokia also happens to trade on the Nasdaq OMX Helsinki. Yes, Nasdaq bought the Helsinki exchange. Anyhow, this means Nokia starts trading long before the NYSE opens. Because prices have already moved in Helsinki, there is usually a gap on the open in New York. Note: This is an educational post featuring a technical analysis technique.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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