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Technology Stocks : Creative Labs (CREAF)
CREAF 0.448-12.1%Dec 17 12:59 PM EST

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To: Vanni Resta who wrote (4497)10/21/1997 11:02:00 PM
From: Andrew Hunter  Read Replies (2) of 13925
 
How do you determine when a trend is reversing direction?

Well, to some degree it's subjective, but a number of flat days followed by an up day, or a dramatic reversal (such as CREAF will probably experience tomorrow and AVID experienced a couple days ago.)

You'll make more money if you're incredibly lucky and jump in at the bottom while a stock is in free fall, but more often than not you'll misjudge and get in too soon. In the long haul, you're safer waiting until a stock looks healthy again before you buy in. For example, have you seen what RATL did recently? Some free falls go much lower than you'd think they would.
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