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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (1833)	6/21/1999 6:32:00 PM
From: X Y Zebra	Respond to of 3536

Do you use Solstice, Lunar cycles and other factors in your trading? No. I do not use those. I use a "magic brew" which is a combination of + DMI - DMI and ADX (directional and trend following) indicators, with support/resistance lines, which are based on Fibonacci retracements. I try to "confirm" with MACD, and also eagerly seek the proverbial crash and negative outlooks given by the Stock [market] Hens, on fundamentally strong companies. As an example, I can give you is the SHAT portfolio which I have been posting updates on Fridays.... but today is worth a look: techstocks.com UP $ 64,612.77 0r (+ 6.44%) The Hens are in deep doodoo, as they were recommending to sell.... (May 24-99) Remember that they were recommending to go short, so I would look at those companies on the long side. I did NOT do anything with said stocks, as I have been busy with others, but the criteria would be similar. This last "interest rate scare" was a great opportunity on many of the financial/brokerage service stocks..... A gift from the Hens... SCH and AMZN are a couple of good examples. Once positions are established, I start selling calls against the long positions (covered calls). This means that I seek companies with high premiums. Most times, the options expire worthless, so I get to keep the stocks, and the times they call me away, the strike price is set to give me a profit, so I do not mind.... In the last few months I have been playing with LU, COMS, NITE, SCH, AMZN, FDX, and others, some I keep longer, some I day-trade or within the week, or so.... Market psychology is important to me, so I try to seek for those moments of absolute despair and desperation. An important aspect is to do all these studies with companies that will not be going bankrupt next week, in other words their fundamentals are reasonable, so if I make a mistake, I am not killed in one day.... The use of covered calls has been an incredible boost to my performance.... I also try to avoid seeking the "big kill" type of trade, as many, many times, I have seen a nice "chunky" profit turn into a meager profit, or even a loss.... so the selling of calls, "forces" the sell. It is amazing what the "sand and gravel" type of profit can amount to.... I do acknowledge that I use "the seat of my pants" as part of the magic combination.... sometimes I regret it, some times this allows me great trades. A system that I would like to learn is "Market Profile" as I believe it can analyze the way the day went, and recognize pattern in which buyers/sellers come in and out at specific times.... I have looked at the point and figure system... but in my eyes, these days markets move too quick, movements are much faster and larger. While I do not doubt the efficiency of P & F, it may let some opportunities be lost, since it seems to take longer to recognize specific changes in direction... and said movements can be substantial, as we have witnessed recently. p.s. I am also a secret admirer of pagan practices <g>