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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Pink Minion who wrote (6725)	10/25/2000 8:49:36 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 30051

Ex, I simply trade the "channel" until the channel changes. And sure from time to time I have big wins and even strings of such wins (recently in SCMR), but sometimes I get my head handed to me (recently VECO, CDTS and RDRT) and probably today JDSU and SCMR and I might even have to bail out of the bu$$ if it does not seem to get above $61 or so. On th other hand, take SCMR, since the beginning of October these were my trades: 74-81 (7); 78-78 (0); 75.5-79.87 (4.3), 83.5-91 (7.5); 88-82 (-6); 69-73.75 (4.75); 71.12-72.25 (1.1); 69.87-77.5 (7.6); 73.87-81.1 (7.25); 77.87-86.87 (9); 84.87-95.1 (10.25); 90.87-91 (0) and now I have two losing positions from 89 and $83.87 which will go out at a loss of $22 and $17 if we breach the $67 area. The wins amount to $53, the loss, if I have to take it to $39. Mind you I was in SCMR before above $100 and could have "stayed" and just have a loss (if $67 is taken out) $33. So getting out of the way and trading the channel (which is very wide ($68 to $98) made sense. Since I did not know at any time how far up the recovery would go, I would get in take $5 to $10 bucks and reenter few bucks below the last entry, until I get an accedent like today. Even if SCMR breaks down completely, by not letting it go above 10% of the total folio (right now it is not even 5% and if I add to day at $68.75 it will get to 7%), you conserve capiatl in case an accident happens. Zeev