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

To: yard_man who wrote (5769)	4/13/2001 6:38:47 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 52237

re: how widely spaced increments (for shorting semi-equips)? Now, that's a difficult question, and if I guess ballpark right, I'll be happy. As I said, almost all the semi-equips closed yesterday just at or below resistance. So, they could gap down on Monday, and the only puts I'll get are the ones I bought at the close yesterday. The stocks seem to be doing a lot of gaps up and down at the opening, then going sideways all day, then making another move in the last hour. I tend to do all my buys and sells near the close. But, assuming this rally has further to go, one method might be to use the SOX index to space out purchases of puts. The semi-equips all go up and down together, and always go the same direction as the SOX (but more volatile). We are now just below 600 on the SOX. I very much doubt we can take out 750 on the SOX, which is the January top, and also the 200D moving average. The January top was 50% above the previous lows. A similar % move this time, off the 453 low, would bring us to 680. So, if we reach 700, I'll be loaded up on puts, as I think the odds of going much higher than that are slight. So, I bought a 1/3 position yesterday. I'll add another 1/3 if the SOX reaches 650, and the final third at 700. siliconinvestor.com