Ken: I agree, however, I have a level of support at 23 1/8.
What am I baseing my support level on?
I have been following Nextel for 8 months now. For some reason, 23 1/8 seems to be a support level, oh yes, give or take a small percentage. But for conversation sake, lets say 23 1/8 is a good stop loss number.
This is based upon Nextel's prior retreat based upon world news, terrable October, first hint of Asia Flu, first publicity on Clinton's affair with Monica, etc., as Ed says the three tests, usually the fourth goes through. We may be close, but I think the Nasdaq market has to rebound now.
My prior investment posture has been to pick winners, invest, follow them up as anticipated, pick a stop loss point and plan to sell when they cycle down. I have faied terrably with this approach because I did not follow my own plan. I fell in love with the stocks and/or the companies. I amassed some real nice gains, only to watch them disappear in the recent month. What went wrong, I held and did not sell when the stock fell through my mental stop loss point.
For example Adaptec. bought at 19, it's 52 week low, company had a buy back plan at 23, profit of .20 per share, could never go lower than 19 a sure winner, right? wrong! Today 14 5/8, I waited to sell at 14 15/16. My advice to the group, don't do what I did. I won't any more.
Nextel stop loss for Al Gutkin 23 1/8, I like the stock and at this point I predict a rise to 26 range before it retraces.
Al G., a Peter Lynch fan, not. |
