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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36103)	2/6/2002 2:06:59 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68115

[madtrader] Wed Feb 6, 8:42am PST GE bottomfishing MSFT CYMI SEBL VIX is indeed starting to spike higher, and VXN is joining in as well. At this point, the market hasn't seriously reach the normal "bounce" level yet. Which is 50% or 61.8% retracement. So, do yourself a favor and check and see where your stock or your picks stands. If they have broken the 38.2% level, in most cases they will keep going down until the next Fibonacci retracement range. It is very rare to see them bounce in between. If they broke the 50% retracement, 61.8% should be next level to watch. If they have broken 61.8%? Well, you probably don't want to be stuck with that name anymore. Anyhow, the fear level is certainly increasing. The accounting bomb, or Enronitis as some like to call it is infecting all sectors right now. Added to the fact that there is a ton of death spiral convertibles surfacing again. It just turn into a vicious downward spiral. You can certainly make the case that people are starting to sell indiscriminately, and starting to throw the baby out with the bath water. If you must bottom fish, try to use stop loss or options. And please check the stocks retracement levels. Most times, the market has a mind of it's own, and it really doesn't matter what the excuse is. The only one I have a "serious" position in at this point is GE, as it has already tested it's 50% retracement level and showed good support. The other "big" name I am interested in is MSFT, but 50% range is around 59, so we are not quite there yet. Of course, if you happen to have a name that is making new highs such as CYMI, then you know it will be the leader for the next move up as well. And for names like SEBL, which hasn't even done the 38.2% retracement yet, it tells you it has good relative strength vs. the market. And should be looked upon as good bounce candidates when the market find it's floor. long GE, MSFT, CYMI calls. [RumorDude] Wed Feb 6, 8:27am PST BEAS BEAS has set up a bit of a 15-20 trading range with us sitting at the low end going towards earnings. While the chart isn't the most pretty thing in the world, we'll try a trade before earnings come out... Long