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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: horsegirl48 who wrote (31902)	3/9/2002 9:44:47 AM
From: Ibexx	Read Replies (3) \| Respond to of 52237

Does it really matter now? Seems academic since Naz has gone up 200 points. Ibexx

To: horsegirl48 who wrote (31902)	3/9/2002 10:51:23 AM
From: Chris	Respond to of 52237

i presume it will be negated if we blast past those resistance levels i mentioned on friday night (ie: spx 1175 and qqq 40) what i will do is take it as a 2 part trade.. ie: sell into resistance... if resistance is taken out upside, then rebuy.. danger of this strategy is that the market can headfake you with some breakouts abv resistance and try to trap you if it reverses back below the breakout resistances. ---- but the thing i like this strategy is to take some profits and also to let the MARKET decide what it wants to do as I sit in higher cash levels.. breakouts above strong resistance levels take time and possibily multiple times to attack.. i doubt it has strength to punch out in one shot.. that fade on friday was a sign of WEAKENESS.

To: horsegirl48 who wrote (31902)	3/9/2002 10:59:56 AM
From: Chris	Read Replies (5) \| Respond to of 52237

the amateur's will buy on dip on every dip we get.. but the pro's will buy on dip only when market indicators show "strength".. (which is what i did tues-wed).. market was basing after big breakout on monday and still showing strength.. so, I bought on the dips on tues/wed. HOWEVER, now that the market has moved up (amatuers have missed the departing boat), they will be waiting for the next dip to "join in"... however, with my 120 min indicator showing "toppy" signals (did anyone notice it?), the pro's will be selling into strength as the amatuers will be "buying to play catch up".. That's why i always like to use indicators rather than looking at price alone. Indicators can tell you the underlying strength/weakeness that price action alone cannot. ie: price is hitting resistance for 2nd time. However, perhaps indicators are showing divergence or weaker momentum/strength on the 2nd attempt. Those that look at price only will only see price hitting resistance (they say: "no big deal").. Those that look at indicators might see some "cracks" in the armor on that 2nd attempt. hope it makes sense. right now we are all guessing on next week's action. Important thing is HAVE A PLAN IF: scenario A) we hit those resistances and back off and sell off. what do you do? If long already, do you sell?. If not long, do you buy on the dip? scenario B) If we break above those resistances: if already long, do you buy more? if not long, do you buy? these questions and trade planning are for the trader to decide.. the bottom line is.. WE HAVE AREAS OF CONGESTION, WHAT ARE YOU GOING TO DO? HOW DO YOU PLAY IT? Trading is all about planning.