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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (4)	8/27/2000 1:59:34 AM
From: Sharck	Read Replies (3) \| Respond to of 37746

Thanks Rande, Sober, Peter, 2Mars, Yes EMLX was something. Below is a reconstruction of how it was played on Tonys private site... No one person can take credit as it was a tremendous group effort. This also speaks volumes for why the little guy can get squashed, years of his/her hard earned life savings vanished just by being on the wrong side of a trade. I hope by hanging around here, I will show many of you what tends to work, and what doesn't, when to use stops and when to use ltds, how to allocate and when to gamble, when to use options as a hedge both long and short, or just hang around naked. Like with EMLX I won't be able to do it alone, the MMs will always try to keep a step ahead, and so far they have been beating the average investor hands down. This is how we played EMLX: I closed out my longs at open, and immediately went short. This was on t.a. and a fluke as I had not yet known of the hoax PR. We were able to add to the shorts on a few upticks btn 107-104, then covered btn 60 and 45 as the fact that the company had not yet halted trading suggested a potential fake. We then started buying long, though time was not on our side to build a big position as trading was finally halted. I did look at the options, both calls and puts but did not feel I knew the story well enough nor had the time to research what the spreads were worth. We then went looking for any sympathy plays and found some. The most obvious was QLGC and BRCD, which we grabbed for a quick scalp. I also picked up some STOR and anticipate this will bounce at open on Monday. In prep for resumption of trading we sent out two orders, one, knowing many had to cover shorts that they had not already done so and the knowledge that many newbies would buy with mkt orders, the price was going to be high. We sent our sell longs EMLX @120 ltd, and went short also ltd@120. It worked out perfectly as the mkt crossed at 126 which is where we got taken: covered longs and went short again. While some may have covered I suggest leaving EMLX open short for another few days, as volatility will allow for a better cover opportunity. I hope none here got caught in the downdraft, though it could have easily happened as any stops would have been taken out and your mkt orders would have been covered somewhere in the low 50's to mid 40's. This is precisely why I have decided to join SI and perhaps empower some of the daytraders here and help in any way I can to keep us all stay ahead of the game. Hope to see many old and new faces. No question will go unanswered. Good luck, trade smart... Sharck