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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (19003)	2/20/2001 5:22:08 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 19374

Hi freeus, Sorry it took so long to get back to you. I was out of town. I don't like to short stocks that have dropped as far as VSTR has. It is the converse of chasing a popbottle rocket to me. VSTR is extremely oversold, so the probabilities that it will correct back upwards is high. I instead prefer to short stocks which are in a downtrend, but are temporarily consolidating of correcting up to their moving averages. I like to target an entry at a point the stock has failed at previously, for example the 100 day ema. If a stock that is in a downtrend shows that it gets turned back at the 100 day ema, then I will wait for it to again reach that point, and short when it starts to fail. askresearch.com However, VSTR might make a good short anyway. It has tested today support at 92, and looks like it will fail there. The next lower support is 90, which is long-term chart support. The reason why I might still entertain a short position with VRSN is that it has been in a basing period for about 6 months, and just recently broke to the downside from that base. For that reason, it will likely continue down. So here, I would look to enter as the stock again trades up to test the lower boundary of that base/trading range, which would be 100. If VRSN tests this level and fails there, that says that the downside break is real, and that the stock does not have enough upside momentum to trade back into the trading range, and will therefore most likely begin a downtrend phase (from the sideways trading phase it has been in). JMVHO..... WS