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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Jack Jagernauth who wrote (9436)	12/1/1999 5:48:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Jack and Scott, The way I've done it is to take the Idiot Wave's value (this week it's 44%) and use it as my guide. Let's say I currently have 48% Cash Reserve which equals $10,000 and a stock value which equals $10,833. I'd pull 'vealies' for some time to dilute the cash reserve to say 40% before I'd resume selling. Take your current cash reserve and the 40% as the divisor. So it will be $10,000/0.40 = $25,000. This means that the value of the equity now equals $15,000. To keep it simple let's assume 1000 shares in the account. So, the price per share would have to rise from $10.83 to $15 before we'd sell again. See how easy this stuff is??? :-) Best regards, Tom