Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS -- Ignore unavailable to you. Want to Upgrade?

To: - who wrote (71)	5/21/2001 12:26:37 PM
From: Dave Gore	Read Replies (2) \| Respond to of 565

Maybe we get a slight pullback now...let's watch. Sensing a pullback here. The key again is whether the dip is bought. Will be very interesting the rest of the day, especially after we pull out of the doldrums.

To: - who wrote (71)	5/21/2001 7:09:31 PM
From: -	Read Replies (1) \| Respond to of 565

DAILY TRADING SUMMARY FOR MONDAY, MAY 21, 2001 The day started off a bit slow with the Nasdaq and S&P Futures started out by chopping around for the first 40 minutes of the trading day. We scanned the premarket for short/long plays and did get into QLGC right out of the gate. Initially, we noticed from our sector scans that there was weakness in the oil and banking sectors so we shorted BHI and JPM. We also took on a short position in IR, as it was exhibiting relative weakness to the market. And just for kicks we whacked the bid on the donuts (KKD; surprisingly, finding shares available to short today) but revoltingly were stopped out for a "donut hole" sized fractional loss. It's possible that all the talk in our trading center about the Krispy Kreme experience, donuts, marketing, etc has stimulated demand for the stock into the "irrational exhuberance" zone <G>. At approximately 10:10 am EDT, both the Nasdaq and S&P Futures broke out of their trading ranges and we covered all three shorts. We took a 1pt loss on BHI & JPM and made a small profit on IR. It was now time to get long. During the rally we were in and out of BRCD, JNPR, EXTR, QLGC, etc several times accumulating our profits a point at a time, keeping stops very tight as we weren't yet sure we had a true "trend up" day (based upon recent experience). For example, we entered EXTR around 11AM Eastern in the high 37's; the stock rallied to just above $39.00 where we sold it. Around 2:00 pm, we re-entered EXTR at $38.02 and shortly thereafter sold it into a rally at $38.97 for a nice profit again. The pattern was similar with QLGC and BRCD which we loaded up on, and unloaded twice. This was the pattern of the day. We also executed about 15 profitable microscalps which were too small to be detailed here. Those we are just beginning to report across the audio channel when there is adequate liquidity. Usually, by the time we could queue them up in the position minder, they are over and done with. During the final 45 minutes and going into the close we selected and entered (using tightly stopped entries) the following stocks as we got aggressive with eight overnight plays: CSCO, JNPR, EXTR, JDSU, RBAK, AVCI, SCMR and BRCM. We are obviously looking for a gap up tomorrow in the networkers and the semis as the news of this immensity of this breakout rally session spreads to the retail crowd... perhap it will even give us some follow-through for a day or two, especially in the stocks that didn't fully participate in today's monster rally. We came into the day carrying KEI long. KEI sold off for the first half hour of the morning session we added to the position at $30.67 with a tight stop under the adder. KEI reversed around 10:00 am and headed for the highs of the day as we trailed a loose stop. So we are holding KEI long over night. Today was a major technical breakout in the Nasdaq, as the critical 2230 level marking the highs of the trading range were taken out decisively. The S&P's and Dows also delivered follow-through and confirmation to their recent breakout, so it's time to get Bullish, at least for a couple of hours tomorrow morning (hopefully longer, like a few days or maybe more). Although it could have been a bigger day, we took nearly 10 points out net, most of the time risking less than 0.5-0.75 per trade. We have learned that what is much more important than having big days, is controlling risk carefully, staying nimble/flexible intraday, and consistently building your equity curve in all kinds of market conditions. That's the only thing that works over time! Good trading, Steve, Deron, & Ed General Partners Intraday Investments