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Strategies & Market Trends : Trade What You See, Not What You Think -- Ignore unavailable to you. Want to Upgrade?

To: chris- who wrote (461)	3/23/2001 5:48:03 PM
From: chris-	Read Replies (1) \| Respond to of 867

Thursday's action was a great confirmation for what I believed to be consolidation that we noticed on Wednesday. We played KLAC on a breakout in the afternoon following the uptrend confirmation shown in the broader market. I put up a video on with some comments that I hope you find some use for in breakout confirmations. Buy high, sell higher is often too good to pass up in a trend day. realitytrader.com All the best, Chris

To: chris- who wrote (461)	3/26/2001 5:22:39 AM
From: Apakhabar	Read Replies (2) \| Respond to of 867

Hi Chris, I was very impressed by your discussion of PLMD, which I just listened to. FWIW I am holding a small long position in the stock (at 18 3/16; the stock halted at 17). My take is a little different because I have followed PLMD for a long time (in fact I got started in the stock market about 10 years ago because I was dating an analyst who specialized in health care stocks, and she later issued coverage on PLMD) and it's one of the few stocks that I trade about which I actually have opinions (FWIW the opinions are not all bullish). Anyway my point here is not to discuss the merits of my position, but rather I want to say a few things... first that your comments about losing control of the trade during a halt are quite good. Believe me, I hate not having control, which is why I never hold overnight positions unless I've either been unable for some reason to exit, or I've consciously bought something in the after hours with the understanding that holding it overnight is a gamble, albeit a calculated one. Anyway, I have not experienced anguish over this halt, but I must say, thinking about it strictly as a trader, there is no defence for being happy holding a halted stock. That is to say, your discussion has chastened me a little bit. I still feel good about my position (meaning I think the stock will gap up higher than where I bought it), but for reasons that are perhaps intuitive or at least based on something other than my normal trading rules which are, I think, closely aligned with your reality rules. Meaning again, I wouldn't sell my stake now for what I paid for it, but neither would I want my friends and family holding the same position, either. It's an unusual risk. Lastly, however, I have to question your notion of what a chart "normally" looks like prior to a halt. Mostly your chart analysis just showed what a panic and capitulation looks like. Do you have other halted stock charts that look like that? You also have to ask, how many charts like that do not culminate with a halt? Upon reflection, would you say perhaps the reason you shied away from trading the stock was not because of what the chart looked like, but rather because the question of fraud and an FBI probe was in the air? We trade our beliefs, after all, and I agree with you that no professional traders would trade a company with a whiff of fraud about it --but I would add-- unless they had a number of other beliefs that they thought were valid and could co-exist with that whiff remaining in the marketplace. Anyway, I commend you for a fine commentary. If my trade turns out badly I'll try to post something useful about the experience.