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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (27968)	9/6/2000 9:49:20 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69967

Interesting that people are still in a speculative mode at this stage. *********************************8 'kensey' has recommended NUFO (Long) at Sep 6 2000 4:29PM NEW Focus ( NASDAQ : NUFO ) Symbol Last Time Change High Low Volume ----- ---- ---- ----- ---- --- ----- NUFO 110.13 5:47PM -16.50 127.88 108.00 966,700 Community Take -------------- 30 Long / 11 Short 'kensey' said: fling a little bit at NUFO from the long side. but this is nothing but a nibble. a small gob. NUFO is in a free fall and in two days has given back all the gains garnered since the stealth rally going back to august 7 commenced. 20 days of gains wiped out in 2 days. to say the market is a discounting mechanism is probably an understatement. just what kind of mechanism is it really? the dynamic is simply that things go down a lot faster than they go up. this dynamic is manifest in human nature : things get destroyed a lot quicker than it took to build them up. rome for example. or say saws taken to the trees in the forest. NUFO has utility in that it is a momentum stock in it's purest form. so the dynamic is evident here more than in other stocks. NUFO was one of the first to start to get wacked yesterday. relatively tight action in the price bars through much of august gave way to a dive that made it evident that things were about to change. so it goes from the short side : you lose money for an extended period of time then make it all back up and then some all at once. so when flipping back to the long side, that dynamic needs to be kept in mind : it may well be that NUFO continues to slide. viciously. but eventually, expectation is that this slide arrests and NUFO starts to move higher. only way to participate is in chunks. think maypo. unless it is a case of 'game over'. that fall brings on the fall. that go go valuations in fiber land are coming to a close much as it did in B2B land back when. since this is the nature of the gamble, not a lot of money is extended towards this play. to an extent, it is the challenge of trying to play a stock that has a most difficult of a trading dynamic. to put the red and blue annotations on the correct spots on a stock like NUFO is really more for 'sport' than anything else. and to keep the nature of the raw beast that is NUFO on the primary radar screen. the future sentiment shift is likely to show up here first. once a cup is in place and sentiment is improved, more can be extended. whoops. market now closed! buckets of money went into CHKP, BRCD and NUAN at 3:59. but was it real? it is that quick that things can turn around. which is why buying in small gobs when things are getting shot to hell makes sense. and why selling in small gobs when things are ripping makes sense. the only way to approach the dynamic and try to smooth out is to proceed with small gobs. in as strategic a manner as possible. trying to pinpoint exact sometimes works but is hard to do consistently due to the high degree of randomness encountered the closer one looks at the action. kensey