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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?


To: allen menglin chen who wrote (32821)8/24/2000 3:07:39 PM
From: Rande Is  Read Replies (3) | Respond to of 57584
 
Respectfully, you missed the dynamics of the "play", Allen.

And here's an early Christmas present. . .

The whole idea of my making alerts on CDRS, ASYS, or similar type momos. . .is to prompt the many short-sellers that read this thread daily into "overshorting" a stock that has explosive momentum potential. . . it helps to speed up an otherwise slow move.

[As you can see, we don't like being "played" here. . . so over the years have developed tried and true methods of strategically stinging back.]

CRDS demonstrated this potential by its extremely sharp 2 day move off its floor. And because this little upward move is seen by short-sellers as extreme, they go heavily short into a stock that is 8 points off its all-time low, yet 188 points off its all-time high. . . making them appear as sitting ducks. It sounds complicated, but has worked many many times. Going back in and actually READING my posts today. . .you will see that I totally explain the play.

The most important factors in such "False Correction" plays are float, demand and inventory. . . . Whereas, PE, PS, Revs, Earnings, Expectations, Business models, Insider Trading and other fundamentals mean little on such plays. . . CMRC, RMBS, TERN, MSTR, ASYS, or if you go back in time some. . .BAMM, KTEL, SIEB, etc. etc. all made enormous moves. . .historical moves. . . because of their low float, heavy short-interest and rapidly decreasing inventory ahead of news. . .ANY news. . . .

Such plays take the boredom out of a dull market.

I am looking for CRDS gets overshorted back to single digits today. . . which is why I have prodded the short-sellers today by making momo alerts. It helps to make an explosion all the more dramatic.

As for my methods. . .everyone here knows full well. . . that I "invest" in value plays and emerging technologies. . . .I position trade using Technical Analysis. . .I swing trade pending events. . . . but when it comes to the highly psychological game of Momentum Trading. . . low float stocks with heavy momentum, large followings and dramatically unusual volume are the only ones worth playing. . . and it is also well known that I play momentum plays both ways for the purpose of added juice on turns. . . as well as greatly reduced risk.

Rande Is