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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: SirRealist who wrote (5414)	2/27/2001 2:27:17 PM
From: Jenna	Read Replies (1) \| Respond to of 6445

<font color=green>► THE VICIOUS SHORT CYCLE http://www.marketgems.com/atom_one.gif There is a fine line near level 4 when the stocks are so low that its dangerous to take shorts home. We were just discussing that in the room. DCTM was discussed comparing the short there with the short of ESRX, CCMP and ITWO.. That red circle is the optimum area to short.. you get the beefiest shorts there. We got NTIQ throughout every cycle after the spike high. CCMP, DPMI and ESRX are still near the red area a little lower but shorts will be beefier. That is why I also chose to short the others. Usually I look for beefy shorts, than the next stage (like the stage 4) are the sink or swim shorts.. these are those that have had double or triple bottom breakouts.. or head and shoulder tops. they move down to a point and might just recovery. (NTIQ and ONIS did that once this week, but they invariably sink right back) JDSU is such a short. it is at the 52 week low, looks pretty hard for recovery. And when it does recover, the recovery will probably be shorted yet again. So when does this vicious cycle end? Well look again at the image. When they return back to stage 1 and renew themselves. So far they have not done it but they may.