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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Jerome who wrote (94047)	12/8/2001 3:20:26 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Jerome, Strategy One Day Trade. A lot of stocks that gap down continue down during the first half hour and then recover during the next half hour as buyers move in. If CPQ gaps down on the open, buy the market around 10:00 AM. That could be the low or close to it, unless CPQ continues to trend down. Too bad no one can tell if it will continue to trend down. This is a short term trading strategy. Short term traders often exit around 10:30 with a nice gain if there is a recovery. End result is a profitable trade on a stock that has a loss for the day or a small loss. Strategy Two Short Term Trade. Watch a real time chart and wait until CPQ starts to move back up before buying. Starting a "move back up" is a judgement call. Waiting until a higher low is set is one technique, but there are no guarantees. Sell when it starts making lower highs. Strategy Three A swing trade strategy. Compaq has horizontal support at $10.00 area. Trend line support at $9.90 area. If it closes below those support areas, it could try revisiting the $8.85 support area. Stocks often don't reach support areas. If CPQ closes below the $8.85 area, it may be broken for some time. Pick an entry price close to a support area. All of the above are trading techniques with risk attached and I have lost money using them.<G> NW