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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (3629)	9/6/1999 10:02:00 AM
From: KM	Read Replies (1) \| Respond to of 18137

I like to short em after it's abundantly clear that a top has been reached and they're on the way down. With the goofy moves that a lot of stocks have, there's still plenty of downside for the taking. A few weeks ago, I stupidly shorted HLIT betting on a double top that would fail. Not only did it not fail but it blew through it like it wasn't even there. In the premarket it was clear it was going to gap over the previous high so I set about desperately trying to cover before the market opened. Luckily, I caught a market maker on the offer who was obviously too busy eating his donuts and he sold me the stock to cover at a price which was not seen that day or henceforth. Even at that, it was still "only" a two point loss. Anyway, that experience reminded me that I like to short weakling stocks, not the ones that people will chase and pay any price for.

To: HairBall who wrote (3629)	9/6/1999 10:28:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 18137

I agree with your take on this. I also want to add that one of the tools A@P uses once he has entered a short position in a stock that is not selling off on him quickly enough is to actively bash the stock in public. Using his following and the impact that he can have on other people's thinking in chat rooms, he helps precipitate the outcome he is looking for. This operating practice of his is a bit contrived for my taste for him to lay claim to what he advertises as a superior record of short picks. This operator understands the power of the media and how to manipulate it to his advantage like few others I have come across in his line of business. JMO. Bob Graham