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Technology Stocks : Vixel (vixl), a fibre channel company! -- Ignore unavailable to you. Want to Upgrade?


To: Kerry Lee who wrote (336)12/21/1999 9:25:00 AM
From: Sam Nizam  Respond to of 377
 
Not going to average down. I only have 200 shares left. Might try to scalp a point or two today though.



To: Kerry Lee who wrote (336)12/21/1999 7:32:00 PM
From: LemonHead  Read Replies (2) | Respond to of 377
 
Hi Kerry, I think your thoughts are right on target. Really would like to pull the trigger but I think you placed everything very nicely.

Good friend of mine introduced me to his "Falling Knife Theory a year ago" you just added a very real timing issue. FWIW

Keep in mind that this Post is in reference to ORB sometime ago. Just an example.

Look for this pattern to emerge:
1. Initial collapse
2. Bounce as selling is exhausted
3. Value players step in
4. Mo-Mo players see % increases and jump in
5. Mo-Mo players ride it for a while and then dump
6. Stock drops and then bases higher than lows reached in step #2 and continues up.

This one is close to a buy assuming they don't go lower than $16 on this drop, otherwise we start the counter again.

Right now on ORB, I'd say we were in the 2-3 stage.

Anyway, when I'm buying falling knives I like to buy some in the 2-3 stage and then load up in the 6 stage. Sometimes it works, sometimes it doesn't.

--
Dave


It helps to review the lessons when the situation presents itself.

Keith