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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (5624)	12/15/2000 2:54:11 PM
From: TA Trader	Read Replies (1) \| Respond to of 19219

I'm back in! Look at my buys NUAN, VRTS, BEAS,FCEL, MERQ & CHKP for 15 min. MA Crossovers. Also bought EMLX at gap closing at 128. It splits tonight 2 for 1. A steal. We have electoral voting Monday and FOMC on Tuesday. I would expect to see some short covering Monday. Hopefully a rate cut Tuesday. WHAT A COUNTRY!

To: J.T. who wrote (5624)	12/16/2000 1:28:33 PM
From: TA Trader	Read Replies (2) \| Respond to of 19219

J.T. The best book that I have read that deals with sentiment indicators and investment discipline is "Trading For A Living" by Dr. Alexander Elder. He has a section on computerized TA including Stochastics, MACD, MA's, Momentum, Williams %R, and RSI and how they are constructed and utilized. He also has 3 main tenets which I attempt to follow closely. They are 1. Understanding that TA is applied social psychology and that chart patterns merely reflect crowd behavior. 2. You must have a sound understanding of the market and a competent trading system which you adhere to. 3. You MUST practice Money Management i.e. Use Stops. Limit your losses and let the profits run. As an example, I took small losses of 2-3 points Thursday and Friday,following my trading system already described, I got in perfectly and took out 12 and 14 points on CHKP & MERQ. I used trailing stops and finally decided to sell when they ran up to fast. When this is happening, and you see a stock pulling too far above your MA's (13 & 28)it's like a rubber band that will come back to normal. Either you take a profit or someone else will. I am still holding EMLX as I bought it when it was off 15 pts. and is therefore not at all extended. A point there is understanding the market and that stocks also have gaps that must be filled. I watched EMLX as if it was "hell bent" to come down and finally fill that gap before reversing. This is the toughest market that any of us have ever seen and therefore our time horizon has to be very short and our money management discipline totally in control. The unexpected is everywhere and they will continue. i.e. Is IBM next? Next week, I will look to buy early weakness as I expect some short covering before Tuesday's FOMC meeting. We would all love to see a rate cut but most likely we will see a Fed moving "bias toward ease" or I pray we do. Stay Loose and Stay Tight! WHAT A COUNTRY!