Leveraging Monday Gap-Up Stocks for Short-Term Momentum Plays: TXN, RELX, and the Power of Institutional Flow

In the high-stakes world of short-term trading, Monday gap-ups are like neon signs flashing “Opportunity Ahead!” These explosive openings—where a stock leaps higher overnight—are often fueled by concentrated buying pressure from institutions. Today, we’ll dissect two powerhouse stocks—Texas Instruments (TXN) in tech and RELX PLC (RELX) in industrials—to uncover how their gap-ups signal high-conviction plays. With Moomoo’s real-time data, we’ll map the entry and exit points that could turn these gaps into profit engines.

The Monday Gap-Up Playbook: Why Institutions Love It

A Monday gap-up isn’t just noise; it’s a silent scream from institutional buyers. When a stock opens 3%+ higher than Friday’s close, it’s often because funds are piling in overnight—reacting to earnings, macro shifts, or sector-specific catalysts. The key? Timing. These gaps rarely stay open forever. Let’s dive into the numbers.

Case Study 1: Texas Instruments (TXN) – The Tech Titan’s Gap Game

Sector: Information Technology (Semiconductors)
Key Catalyst: AI-driven demand for analog chips

Historical Performance (Last 3 Years):
- Average Gap-Up Magnitude: +3.1% (with a max of +4.3% in Nov 2022).
- Intraday Volatility: 67% of gap-ups saw a downward drift by day’s end, averaging -0.4%.
- Next-Day Magic: 75% gains the following day, averaging +1.7%.

Why It Works: Institutions often front-run positive catalysts (like TXN’s AI chip wins) on Monday, then let retail traders chase the gap—only to sell into the intraday dip. The next-day rebound, however, is where the real money is.

Action Plan:
- Buy the Gap: Enter on the open, but brace for a pullback.
- Hold Through the Night: Institutions are already positioned; ride the next-day rally.
- Bail at 10:30 AM: Algorithms often reverse flows post-10:30, so lock in gains by then.

Case Study 2: RELX PLC (RELX) – Industrials’ Hidden Momentum Machine

Sector: Industrials (Specialty Business Services)
Key Catalyst: Global data analytics demand

Recent Gap-Up Drama (April 2025):
- Gap-Up of +13.6% on April 7, 2025, only to crash 17.1% the next day—a classic institutional sell-off.
- Long-Term Trends: From 2022–2025, institutional buying surged +30–40% on gaps tied to ESG milestones or product launches, but fell -15–25% during macro-driven volatility.

The Play: RELX’s gaps are trickier—they reward patience. Wait for the post-gap dip (like April 8’s -17% plunge), then buy the pullback as institutions rotate back in. Avoid retail-driven gaps; focus on those tied to earnings beats or strategic deals.

Sector-Specific Catalysts: Where the Money Flows

• Tech (TXN): AI, 5G, and EVs are driving analog chip demand. Institutions are doubling down on long-term winners like TXN.
• Industrials (RELX): ESG compliance and data analytics are non-negotiable for global businesses. RELX’s dominance here makes it a must-hold.

Timing Is Everything: How to Exit Before the Gap Closes

• TXN’s Edge: Use the next-day rebound (75% success rate) as your exit signal. Institutions are already out by Tuesday.
• RELX’s Play: The first hour’s volatility (gap-up to low) is your gauge. If it holds above 90% of the gap, stay; else, flee.

The Risks: Don’t Let Volatility Bite You

• TXN’s Trap: The 67% intraday drift means no gaps, no gains—if you’re not in by the open.
• RELX’s Pitfall: Retail-driven gaps (like meme-stock spillover) can trigger institutional sell-offs—avoid those.

Final Call: Swing High, Profit Hard

The Monday gap-up is a high-octane strategy for traders who move fast and think faster. Use Moomoo’s real-time data to spot institutional flows—then:
1. Buy the Gap on TXN/RELX tied to sector-specific catalysts.
2. Sell the Dips when algorithms reverse course.
3. Stay Out of retail-driven gaps—let others take the punch bowl.

The clock’s ticking. These gaps won’t last forever—act now, or miss the momentum!

Disclosure: This article is for informational purposes only. Always conduct your own research before investing.