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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (65750)	1/3/2001 7:28:58 PM
From: James F. Hopkins	Respond to of 99985

Sounds good , and when I say I'm going to take some profit it will likely just be a percentage from the gains; it won't reduce the original dollar amount I'll be letting that ride.

To: Casaubon who wrote (65750)	1/3/2001 8:02:57 PM
From: KymarFye	Read Replies (2) \| Respond to of 99985

You mean you bought at the end of the day today? If so, then join the club: After trading back to decency during the day (it's been a long year so far, hasn't it?), I felt comfortable holding one position and taking several new ones near the close: It's rare after key reversal days, rather rare after gap down reversal days, and fairly rare after major up days of any kind (with the exception of a certain brand of blow-off top) that the market does not trade even higher at some point during the immediately subsequent session. Much more common than pure counter-reversals or even than substantial immediate retracements are breakaways to the upside lasting anywhere from a few days to a few months, though I've read that in the majority of instances the market will return at least to the close of a range expansion day within a few sessions. That today's move was no garden variety range expansion, that it was based on a major event, and that it took place within a deeply oversold (and still oversold) market seem to increase the possibility of good or even great follow-through. To me, it adds up to a good opportunity to execute some short-term speculative trades (really involved just taking some gap reversal signals), expecting to trail stops aggressively on part of each position while leaving open the option to try for longer-term moves on what's left over.