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Strategies & Market Trends : WELCOME TO THE CATHOUSE -- Ignore unavailable to you. Want to Upgrade?


To: ACAN who wrote (320)10/1/1999 11:24:00 AM
From: ivan solotaroff  Respond to of 1065
 
Allan,

"HS tried to get in"
Hope you didn't; as you can see today, there's still some bottom lefÝ here.
Check out SRV: Prime reason never to play cats with even the slightest regap (as in 7 days ago); you NEVER know if it's presaging a REAL regap, as today. This might well prove to be the next great signal.



To: ACAN who wrote (320)10/1/1999 12:29:00 PM
From: ivan solotaroff  Read Replies (1) | Respond to of 1065
 
PETM--VOL+1 SIGNAL

Here's the reason why it works so well:
bigcharts.com
High volume will ALWAYS impact the price of a newly minted catsignal, creating a form of ACT: accelerated trendline. It almost always has follow-through to the next morning, when the ACT gets violated. You sell the moment that happens, or wait a tick or two for confirmation.
If you have the brains (I DIDN'T) to sell on that Signal, then you will also likely have the brains to buy again if and when it falls back to the original uptrend, where PETM currently is. Then you have the added benefit of getting in with the extra shares, made possible by the fact that you've added to capital with buying low, selling higher, than buying somewhere in between. I did that once, I think.
Of course, if you didn't sell at the right time, then you have no money to buy on the return to the trendline.

Ivan