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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (39038)	12/22/2000 1:03:50 PM
From: Lee Lichterman III	Respond to of 42787

Hard to help out as everyone has their own strategy, style and risk levels. I like living dangerous and trying to pick bottoms. Dangerous but when playing options, you want to be a contrarian so you can buy low premium and sell into high premium. In other words you want to be buying calls during declines and buying puts when prices are rising. The shift in premium alone often gets you most of your profits and not the price of the underlying. I do not plan on holding over the weekend but that is just me. A lot of people are saying we go up for a few days here. As a contrarian, that is my signal to sell. I will day trade it if it is really a upward multi-day move. So far, I am not impressed. The QQQ has been lagging the NDX by about 10 NDX points all day. IN a bullish move, the QQQ usually trades slightly more than the NDX from my past observations. We also just had a failure of a bullish formation. The breakout of the bullish flag should have produced a larger upside move instead of the whimper it did around 12:20. We might still get a short covering rally on the close or we may see the junk that was bought this morning dumped. Who knows? If you know how to read TA and are quick, I would just day trade this myself. Once I blow out of my other half, I will likely just scalp trade. I am disappointed my trade did not produce better gains and the thin options pit is making it hard to get out of this stuff which gives me added incentive to move into something more liquid and easier to trade. Sorry for the long post that didn't help you any. If you decide to day trade the QQQ. I would get a chart up and connect the highs of 11:15 and 11:35 and extend out to where it acts as support for 12:20 and 12:50 dips. Buy the reversals off that line and sell as it stalls or see if we break out. They are only 1/4 point trades when they stall but what the heck, teenies count. <ggg> Cut losses quick if it reverses on you though as a failure points to a decline around 3/4 of a point or more. Sooner or later, I think we are going to head back up and test the highs though. After that, who knows? If you aren't used to scalping then I would't try it now. Low volume could make for nasty swings this afternoon. Everyone is coming back from lunch now so I expect a major move soon one way or the other. As I said, I am hoping for a retest of the high. Good Luck, Lee