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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Chris who wrote (3953)11/28/1997 4:39:00 PM
From: xstuckey  Read Replies (2) of 42787
 
Chris, I warn you not to read more into my model than it is intended to do. The model should place me in the most favorable position (from a probability standpoint) short term in a stock. It does not predict the magnitude of the move nor the length of time. And it is frequently wrong, about 40% of the time when applied to Intel.

There are many reasons my model would be completely unsuited for real trading of a stock line RADAF. Among the reasons is the large spread between the bid and ask. If the model worked for RADAF in the same manner it works for Intel, and I know of no reason why it shouldn't, then the expected profit on each trade should be about 3/8 to 1/2 point, and the spread would insure you of actually losing.

If the model should have you in a sell mode going into the earnings announcement, however, I would warn you not to bet heavily against the model, for the earnings announcement event is one of the times the model really shines. I will attempt to keep you informed going into the 17th, but do keep reminding me.

Best Trading, X
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