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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: TREND1 who wrote (47184)	4/4/2002 7:14:10 PM
From: Dave Gore	Respond to of 99280

OIC! Larry, I hardly ever have noticed a "V" the next day. Usually it takes a mini-basing period to clean out the ones that are still hoping the stock will go back up. I remember buying SLR in January when they warned and the stock tested it's 52 week low about 3 times in 3 days and then settled down, sell volume dropped off, and I bought it when it held its 52 week low on the 4th test I think. I usually try to go long on a day the Market is at least neutral to slightly positive and momentum and OBV change to positive too. The stock went up 35% in the next 2-3 days from something like $8.70 to $12-13. MIR was another example at $8.00. It was a steal there with a PE of 4-5 and it looked like the oil sector and the accounting/debt issues were subsiding. Some stocks that have big drops can bounce pretty hard the same day, like CHKP did today from $19.70 pre-market to $23 in the first hour or two of trading after the initial big tank, but usually they fall back pretty soon too and trade around for awhile. Part of the reason, too, is that usually analysts don't say anything for a few days while they are watching and re-analyzing themselves, as is everyone else. Nobody wants to be the first to step in. But I will at some point when or if I see positive signs again. It sounds odd, but sometimes the safest plays of the day are the stocks that have tanked too much and are near some kind of major support or have based around for a few days and now are showing signs that serious bargain hunters are stepping in. Watching the trading lot size and volume really helps.

To: TREND1 who wrote (47184)	4/4/2002 8:52:58 PM
From: Triffin	Read Replies (1) \| Respond to of 99280

Larry .. One day big drop .. When I first learned it .. It was to go long on the 2nd or 3rd day after a 'big drop' for the 'bounce' .. especially if it was a 'widely held' name as it took a couple of days for the institutions to lighten up and for the market to 'absorb' the 'news' that precipitated the event .. Recent examples would be ADLAC .. GMST .. The trick, of course, has been to identify the stocks that would bounce from those headed to zero ie the ENEs of the world .. Stop loss and or time stops are a 'must' on these trades to avoid one loss wiping out numerous wins .. Jim in Ct ..