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

To: OZ who wrote (5557)	11/21/1999 8:06:00 PM
From: -	Respond to of 18137

For an example of potential "Turtle Soup" setup (that Oz and I have been discussing), take a look at Lucent's chart tonight. Friday (11/19) LU came up to retest the prior high from July 11 at 78 1/2. This is a perfect "Trader Vic" 2B formation because the second high went through the first one, by just a bit (in this case, 3/8 of a point). If LU fails the retest, it will be a sell below Friday's low ($72 1/2). I would probably sell it up higher, because there often is a lot of panic amongst the pro money managers when the stock is clearly failing to break out on a retest of a previous, substantial high. The selloffs can be quite sharp. Since this is a counter-trend trade though, you have to be nimble and ready to scramble if it reverses back up. These work very well on the Long side too (just turn it upside down), it's a good way to catch something coming off a double-bottom. They setup all day on intraday charts (e.g. 15min). -Steve