Stocks with 'Dead Cat Bounce' potential Message Board

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Strategies & Market Trends : Stocks with 'Dead Cat Bounce' potential

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To: ~digs who wrote (1)	8/5/2001 6:38:17 PM
From: ~digs	Read Replies (1) of 130

It has been said in the past that trading against the trend is counter productive... and will hurt your portfolio over the long run. While it seems logical, I have not yet determined if I agree with that notion. My thinking here is that after an extreme run, price tends to snap back swiftly. The key is obviously in determining where (at what price and time) a trend will run out of steam. So while you might risk X dollar amount because you're trading counter trend... the reward could be much larger than X and has, based on my observations, the potential to happen much more quickly. Furthermore... a stock that is highly overbot/oversold in multiple timeframes is less likely to gap and run against you... due to the already extreme nature of its chart. In fact, I have found that such gaps often prove to be exhaustive.

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