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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude
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To: curtis christopher who wrote (36647)8/26/2000 6:47:40 PM
From: Doug R   of 79378
 
Curtis,

"Could you re-interate your Sell(short) and Cover areas"
It depends on what particular thing the stock is doing.
For the IL/ACT one would short into a ridiculous volume up day when price is over the IL and cover at the ACT.
If the price is 25% or higher than the IL at the top, you could cover at the IL since there's often initial support there...then re-short on the bounce. After a bounce off the IL, a stock rarely finds it as support a second time.

Then there's a short involving the classic cup with handle pattern. Where a stock (say with an alltime high of 40) trails down for an extended period (say 2 to 5 yrs) then returns to its alltime high to create a cup.
Knowing that a MIM will be found early into the climb back up, when a handle begins, a pullback to the peak of the MIM can be expected. Some cups don't put in a handle though so a stop just over the rim of the cup is adviseable.
As one example you can look at the cup with handle formation on MEDC to see that the bottom of the handle reached down to the MIM inside the cup.

siliconinvestor.com

I took a poll on whether the next seminar would be better attended in Richmond VA or Texas and with one day left for responses it looks like Richmond will get the nod. The date is Oct. 21. Send me an e-mail (tiric@aol.com) for details if you think you would like to attend.

Doug R
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