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To: Skycat who wrote (16753)	1/17/2001 9:14:56 PM
From: Jeff	Read Replies (3) \| Respond to of 19297

ok class.....roll!!! lets have some fun with math...... you ever wonder after stocks run.....then pullback.....when will that pullback end......and when should you enter the trade for after the pullback....... heres a little guide to use...... its based on a 50% and a 62% retrace...... heres some examples...... OPTO...... askresearch.com ran from .62 to 1.69.....you take 1.69 - .62 = 1.07 1/2 of 1.07 is 53.5 ......1.69 - 53.5 = 115.5 ......thats target number one for a buy in.....1.15..... but now you take that difference of 1.07 and times it by .62.....that the 62% retrace target...... 1.07 x .62 = 66.34...... 1.69 - 66.34 = 1.02 .......thats the likely target of the retrace...... look at the chart.....OPTO pulled back to 1.00 area.....great entry.....like magic....exact 62% retrace..... now if you know the 50 and 62% retrace levels on a stock......if you want you can make a small purchase at the 50% level......and save the big buy for the .62 level......that way...if the 50 level holds...you wont miss the run.....but if 50 fails......you have the big buy at 62 in reserve......its just another way to trade...... lets look at OPTO again...... now it ran from 1.00 to 2.87...... now i like just playing the first few runs......but there may be another bounce play coming here.....for those with a fast trigger...... 1.00 to 2.87.....1.87 difference..... 1/2 of 1.87 is 93.5...... 2.87 - 93 = 1.94.......now thats its low today.....so it may bounce from here...... but the .62 retrace is.....1.87 x .62 = 1.16..... 2.87 - 1.16 = 1.71 ......that may be a place for a quick buy on a shake....... but always remember overall market conditions first..... and its always BETTER to play the first pullback.....which was 1.00 in this case...... but for a quick trade.....like on the second bounce....1k shares could get you 200 or 300 bucks......find a few of those a day.....or a week......and its easy money..... first bounces......HOLD LONGER.....ROLL$$$$$$$$$