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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (21070)	7/20/2001 5:08:41 PM
From: orkrious	Read Replies (4) \| Respond to of 30051

I for one am scared "shitless" of next week Zeev, I closed out my shorts at the close today for a small loss, figuring that they will likely gap them up Monday am. Can you elucidate your reasons for thinking next week in particular will be so bad? TIA Jay

To: Zeev Hed who wrote (21070)	7/20/2001 5:18:00 PM
From: xcr600	Read Replies (1) \| Respond to of 30051

In case it wasnt posted, from Briefing-- 11:57 ET ****** Professional Detailing (PDII) 59.60 -10.39: Someone just made a bunch of money. Look at the intraday chart for PDII. This drug sales company traded as low as $46 on news that Pfizer (PFE) will be terminating its existing product detailing program with the company. The selling was caused by the headline alone. But once you read the press release, it did not sound that bad. The deal was set to expire on 10/31 anyway, but they moved it up to 10/7. Also, Pfizer represents less than 5% of sales....The stock quickly spiked off $46 to back above $60 as traders digested the press release. That's a pretty solid return in a matter of minutes....Ok, so what's the lesson here? Read the press release first! If you see indiscriminate selling, but the press release does not sound that bad, it may be worth getting in. Shareholders were dumping based on the headline alone. Rarely do stocks fall more than 40% without bouncing. Throw in a story whose headline sounds worse than it actually is, and you get a nice pop most of the time with little risk. Another factor is that because the company did not halt the stock, it increases the likelihood that the news is not that bad and traders are over-reacting to a headline. Also adding to the volatility here was a light volume stock. The exception to this rule is fraud/accounting irregularities. Don't play a bounce on that news as those stocks can go to single digits in a hurry...Keep an eye on PDII in the future as this has happened to them before in late February with the same reaction to a loss of a customer. From a fundamental perspective, you need to investigate why they are losing Pfizer. It could be a sign of worse times ahead. But for a trade, days like this are exciting. -- Robert J. Reid, Briefing.com

To: Zeev Hed who wrote (21070)	7/20/2001 6:24:08 PM
From: hotlinktuna	Read Replies (1) \| Respond to of 30051

Just returned Zeev...my energies did quite well! ESV 21.75 +2.23 was best, but TLM up 1.20, EOG up .65, ROIL up .85 and I'm looking for gaps higher on these Monday...at least I feel the bias will be to the upside...have a good weekend! tuna