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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: jaytee who wrote (13441)	11/28/2000 9:55:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 14162

Hi Jay; I love the Dead cat bounce ( DCB ) plays but they mostly work in an UP market. After the market rallies good and people feel they have money to spare they will jump on stocks that Gap down. In fact you can sort of tell a Bear Market when most of the Gap downs just don't bounce ( or the bounce is real weak and short ). I learned not to play DCBs in bad markets in 98, before that drop I had done right good with em. ------------- The rule of GAPS always filling is not exactly true, UP GAPS seem to always backfill ( it may take a lot of time but I haven't seen any that didn't ) How ever Down Gaps don't always fill, I have seen some Gap down and never fill but keep going on down right on into Chapter 11. ------------- Here's a post I just posted Message 14900614 ------------ I'm going to wait for one or Two of those "margin call" days before I try my buying luck again. The kind of Margin Call day I'm talking of is in the Futures market , where the gamblers can leverage 10 to 1. It's on those days you see the futures drop and drop and drop , the more they drop the more the over extended future players get sold this triggers all the computerized index funds to start buying futures ( and selling stocks ) goes on until the curbs come on, ( by the time the curbs come on a bunch of small time future players are headed for the poor house, as the curbs don't stop the futures from falling until they get limit locked down. Get two of those days back to back and you can just about bet on a DIA or QQQ bounce ..I've caught a few but damm they don't seem to hold for long. Jim