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

To: Chris who wrote (42175)	2/7/2001 11:15:23 AM
From: JRI	Read Replies (2) \| Respond to of 42787

Chris- I can't say that I totally agree ("is wrong from trading point of view").. First the admission: It is not the most-disciplined approach. It does not wait for a bottom to form. You are right there. Waiting for a stock to put in 10 consecutive down days (now 11) DOES take some discipline. It is not your typical "buy the dip"...my argument here, is that some of these stocks are not carving out round bottoms (yet)..they bounce (often within a downtrend) during a couple/three days...perhaps, if one is swift, you can catch that intra-day bounce...but sometimes large bounces occur (in a large way) overnight... Statistically, stock that are down 10 consecutive days...well, they usually bounce within a few trading sessions...and the bounce is usually significant Also, on this particular issue, selling volume had been decreasing (almost steadily) in the last few days (haven't checked today yet)...and it is scraping the bottom of oversold levels... We'll see....I appreciate your thoughts...have generally made more money than lost with this technique (obviously, the inverse also works...shorting stocks up 10 days in a row/overbought)....I do look to you and others for continued education in trading...thanks for the continued tips...