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

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To: Chris who wrote (12262)	7/17/1998 12:13:00 PM
From: Robert Graham	Read Replies (1) of 42787

Looks like MAIR effectively bounced from that support figure you gave at 25. What this support figure a confluence of Fib lines? Or just one Fib line? Due to the gap up and down, a short term resistance has been formed at about 26 3/4 that I think it will have trouble making it through. There may be a couple days further consolidation before continuing up to its previous high. Also note here that is may have been best to anticipate the support at 25 with a stock that has this type of price action. But his would of been a bold move considering the selloff and the velocity down of the price including the gap down. But this is when trades can really pay off. IMO this in parts explains the pop in price today. Right now the stock is at 26 3/8. The bounce apparently started yesterday which would of been observable on the tape. So one could of used the tape to help anticipate the bounce. This would of made for a quick one point or more profit within a day. Funny thing is I think this riskier approach in palying off of a bounce from a retracement does not have much more risk than an entry at the gap up of the stock before tis subsequent selloff. Perhaps even less risk. This depends on how good a trader is at reading the tape. By the way, this type of play on retracements is covered in the book by Joe DiNapoli called "Trading with DiNapoli Levels". This book by DiNapolis worthwhile reading for the short term trader which is a fairly good introduction on how to trade using Fib techniques by an experienced trader who has traded on the floor of an exchange. The only other book I know of that covers this subject is nuch cheaper but much more difficult to read and does not go to the extent of showing a system that can be used with the Fib approach which is IMO very important in order for this approach to trading to work. Joe DiNapoli's method does not utilize Elliot waves to describe the wave action of a stock. Bob Graham

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