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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (5257)	1/8/2001 3:42:50 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 8925

Hi Ally, Re PCDOCS, lets not go there! Re RIMM and holding short positions partly on FA conviction - I would challenge you to look at some charts of companies that you are very familiar with and then mark on the chart key FA events that have caused investor shifts. My expectation is that you are going to find more often than not that the chart gets you in or out of a stock, with more profit or less loss. I think its a find idea to pick candidates for long/shorts based on FA and trade them on TA, but I think mixing the two could be difficult unless you are able to reconcile the different time frames. I.e. if the trade sets up on a few bars on the daily and has an expectation of X, yet your FA suggests that it could be X times 2 or 3 or 4 as a reward, how will you set your stop losses etc? I suppose one approach would be to stalk for very good entries, and should a position be opened up - using the techniques that we talk about around here, it will be stopped out very quickly or be profitable. Once profitable you can set your stop loss to be at break even as soon as possible and if you are hunting big game, just don't trail it as close. Myself I lack the patience or conviction for same, and as soon as something hits its target I take profits. Unless its trending in open space - then who knows where something will stop and trailing stops is the way to go. Re GLW, it made a marginal lower low today (compared to friday). It still seems firmly stuck below 56 as resistance. If anything I'd be short, but since its just stuck and consolidating (looking at a 45 minute chart), I pass altogether. I didn't quite buy the lines on the chart in the messages you pointed me too. I think if you stick with Vic's line methodology you won't go wrong. Takes all the guess work out, and since the rules are there, you will draw them the same way every time. Re the big Candle - does it count? Yes, I do believe it does, because real money was made and lost. As the market ramped quickly tons of stops all over the place were taken out. Some people were stopped in, some out. Shorts were covering. Some new shorts probably entered as the move stalled. So its all part of the game, the landscape is certainly a little different due to the quick motion. That little move may have cleared out a bunch of buyers (shorts) which may in fact prove to be more damaging if 'real' buyers don't show up to keep an up move going. Guess we will find out this week!