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Strategies & Market Trends : Trading From Main Street. -- Ignore unavailable to you. Want to Upgrade?

To: Brandon who wrote (4)	5/6/2001 9:11:56 PM
From: Brandon	Respond to of 226

Cubist Pharmaceuticals provides a good illustration of the Marubozu Reversal Buy (MRB) setup. When looking at the daily chart you can see the wide range red bar that was formed on Thursday. Generally speaking this will show you some degree of panic on the part of traders and investors. On Friday, CBST gapped lower and then managed to trade above Thursdays close. We took long positions in the stock when it traded above $25.90 (Thursdays close) and got out at $28.50 for a profit of apx $2.50. Best case gains on the setup: $3.62. Our initial stop on the trade was placed under $25.40....so for our risk of apx 40 to 50 cents, we got very nice returns. Chart @ swingtrader.net Brandon teachmetotrade.com

To: Brandon who wrote (4)	5/6/2001 10:12:50 PM
From: Brandon	Read Replies (1) \| Respond to of 226

The MBS occurs when, nearly from the moment a stock opens until the close, the sellers are in control. Often times this puts the "weak hands" in a state of panic. Im sure we all recall the times early in our journey as traders that we had a special knack for picking tops and bottoms. We sold the bottoms and bought the tops. The next thing we would know there is a reversal and we are left on the sidelines, or chasing the stock back in. This is the kind of action that makes the MBS profitable. Going into tomorrow UTEK might provide us with a nice MBS. Look for it to gap down under $24.24. If it then trades higher than this price, long positions may be warranted. swingtrader.net Good Trading, Brandon