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Technology Stocks : Ascend Communications (ASND)
ASND 211.20+1.0%3:59 PM EST
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To: Nazbuster who wrote (13755)9/20/1997 3:25:00 PM
From: Harry Ehrlich   of 61433
 
>Harry, I looked at MTZ and see what you mean, but how would one see this coming? To jump in after 1-3 days of "breakout" makes the entry point too high. It seems that focusing on hourly trade activity would simply miss the bigger picture. How does a trader actually take advantage of what seems obvious in hindsight?<

MTZ has traded below its 10 day MA and 50 day MA recently. It then exploded above the 10 day MA with a high range day, which was seen on Thursday's end of day chart. Of course it could have gone either way on Friday - up or down. I placed a day only stop buy one tick above Thursday's high. Had it gone down, my broker would have done nothing. But it traded above Thursdays high, indicating that the momentum was there. In fact, it gapped on the open to 45-1/2. I was stopped in long at 45-1/2 and it closed around 47, breaking the 50 day MA. That should be enough to bring in some institutional traders and the momentum might continue. I got in on the 2nd day of the rally. The rally could possibly continue for a few days (consider Jabil Circuit).

All the above constitues constitues a "trading strategy" and is only a starting point. Now I have to watch the action and exit at the right time. It would have been great to catch MTZ at 39, it was there last week. But as Baruch said, never attempt to buy a bottom or sell a top of a market: "This is a feat only achieved by liars."

Harry
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