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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: J.B.C. who wrote (7998)	5/17/2000 6:13:00 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 9427

I like EBAY as a short. Bearish Catapult, RS Sell in a column of Os. PE of 1123 and they are going to have to spend more money to get business as word of mouth isn't growing the business fast enough anymore (this from ebay management). And any of my long positions are an almost sure bet<g> Oh look, a grub

To: J.B.C. who wrote (7998)	5/17/2000 7:30:00 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 9427

Glad that you made me look. I just shorted EBAY.

To: J.B.C. who wrote (7998)	5/18/2000 6:55:00 AM
From: Tommy Dorsey	Read Replies (1) \| Respond to of 9427

JBC, in shorting keep in mind that in most cases you begin to probe. It is best to short 1-3 of your total and add on subsequent sell signals as they develop. In the intel short it its still below the trend line but was stopped on the buy signal. This does not mean the play is over. You go back to the sidelines and prepare to short on the next sell signal that developes or at least on the reversal up after the sell signals. Sometimes it takes several times to probe, to find a trend. Another idea is with puts. Lets say an at the money put has a delta of .5 (will move 1-2 point with each point move in the underlying stock). You would buy two puts with .5 delta to equal shorting 100 shares. If you are right and the stock declines the Delta's will begin to expand as the stock goes in-the-money. This will in short order have two .75 deltas working for you in relation to 100 shares. In otherwords 1 1-2 points going for you for each 1 point in teh stock. If the stock declines deeper in the money the delta can go to 1 where you would have two points going for you in relation to one point if you shorted the stock. T

To: J.B.C. who wrote (7998)	5/18/2000 8:28:00 AM
From: Dave Shares	Respond to of 9427

<<Does anyone have some good short candidates based on a P & F charts???>> I have used Search and Sort to cull charts for short sale candidates, and the shorts I initiate are daytrades for the most part, so what I do may not work for everyone and what I do is not without risk. I look for stocks that have a daily overbought rating of over 50%, and RS in Os. Then I look at the charts. P&F is art and science, hard to describe the art, it takes time to look at each chart. I look to minimize risk. I am not fazed by a stock on a buy signal if it is overbought, but I set a tight stop. I like a stock that is close to a new buy signal, because I find that if RS is in Os, they will stop there and reverse, and if they do not reverse, I stop out and move on. I view the last top of a column of Xs as short term resistance. If the stock is also overbought on weekly that is good too. If the stock has made a lower top in Xs I like that better. In this market, I am a believer that stocks return to the mean. I look at the trading chart, if a stock is near or above the top of the trading band, I like that better, if the stock is well below the mean of the trading band, I am more wary. If the stock is making higher bottoms, I am wary. If the stock is below the BRL, that is better, but that is a whole different shorting strategy that is also effective. Finding a stock with RS in Os on a sell signal in column of Xs just below BRL is textbook short sale position trade, but they are sometimes hard to find. I am also not afraid to short a stock with RS in Xs if it is above the top of its trading range, but again, I only do this with TIGHT STOPS, and only as a daytrade in a weak market, and I do not do this with a stock that is moving out of a base and do not do this if the stock has a price objective that is far above its current trading level. It is all about risk management and for me, it is all about looking carefully at the chart. If you can find a high pole in this market after all the corrections, like Jerry said, I like shorting them too. TIGHT STOPS. Finally, make sure there is volume in the stock, no liquidity is just as hard for short covering as it is for closing a long position when the trade is not working. I don't know if this is at all helpful, but thought I would contribute. TIGHT STOPS (have I said that enough <g> ?) If the trade doesn't work the first time, you can always go back and hit it higher if the chart looks like it is good for a short later. If you are trading intraday and can hit a target stock near its intraday high, you are left with a TIGHT STOP. If you have the guts to stay with a short, PROTECT YOUR PROFIT WITH TIGHT STOPS. What I do is more comfortable for me with very short term trading, but I can tell you that especially with the high poles, these can be beautiful longer term trades sometimes. Take a look at the high pole patterns like NEON, LMLP, ICCSA, SCII (Hey Gloop, are you reading this, remember that call ?) to name just a few back when the NAZ stocks were in nosebleed territory. I don't know if this is any help, but thought I'd chime in. David