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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: GREENLAW4-7 who wrote (11973)	1/28/2002 10:05:26 PM
From: herry iball	Read Replies (2) \| Respond to of 23153

Green, I had my ass handed to me trying to short some stocks this fall based on what I considered too far too fast (and looking at PE levels that were downright ludicrous). Since then I've stopped considering any of those things, and just trade off the charts (as Dabum is so fond of saying). I've been leaning toward this type of trading off and on, and this fall's runup made me a complete convert. Frankly, I don't care what the PE of something is unless I'm going to take a long, swing position, usually in my 401K. And even then, I use the charts for my entries and exits. I often like to look at where a chart is trading now, and then look back to see what happened to the price when it did something similar before. DHI had a similar setup back at the start of december...getting way ahead of the 10dma on good volume. There too the Stochastics and RSI went into heavily overbought territory with very positive money flow....and it stayed that way for most of the month before a negative divergence on RSI and OBV showed that the run was ending (higher prices, lower tops on the indicators) and needed to 'rest' before either resuming the uptrend, or tanking as sellers showed up. The fact that RSI held the 50 support area (couldn't go below and hold) is what got me out of my short at that time). Therefore, I wouldn't short anything until I see these divergences show up, or a real rounding top on the candles with declining volume. stockcharts.com[h,a]daclyyay[pc20!b200!c10!i][vc60][iUc10!Lb14!Lp14,3,3!Lg] If you have a subscription to stockcharts, you can see the intraday 5 minute on HC, and a perfect opportunity to enter when both RSI and STOCH are heavily into oversold territory. stockcharts.com[h,a]iaclyyay[pc20!b200!c10!i][vc60][iUc5!Lb14!Lp14,3,3!Lg!Ld20] With Jim_p posting that it was a good buy, I put it on my watch list and bought it right near the low...the selling volume dried up, it hit oversold, and I bought it up. Trading shares, core shares, and some for the 401K. I use this stuff to enter swings (long, short), and intraday scalps (over 12 scalps today on a variety of stocks and sectors). Whenever I don't follow the rules I've set for myself, I have to dig the burrs outa my butt (can you say LEN puts?), but they have til march to disappoint me, and it was just a starter position. .......holy crap what a long post.....I gotta stop drinking that afternoon cup of turkish coffee. <gg> Cheers.