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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sean sanders who wrote (83040)	4/10/2002 7:31:34 AM
From: HairBall	Respond to of 99985

sean sanders: I bought WCOM when it tested the pivot low put in on 2/6 on 2/20. I rode it up until on 3/8-11 it, for the most part, closed the Feb 1-4 gap-down in a fairly steep rising channel. I closed the position expecting a retrace. WCOM provided more than just a retrace. I bought back in a little above six dollars in late March as the price action tested the Feb02 low, my intraday technicals were all in or near the oversold range. WCOM did rally off the oversold condition, but stalled around 7. Being away from my desk for a few days, I decided not to trade the pullback and held keeping my original stop. That proved to be a mistake and a winning trade turned into a loss. That was a risk I was willing to take. With yesterday's break down the price action dropped below the multi test bottom which began on Feb 6th, triggering my stop loss. I have some entry targets I am watching; the 1994 secondary low at 5.45 and the 1994 low at 4.66 for possible entry points. The Telecom sector moved down yesterday. Just some issues I watch...VZ, BLS, WCOM, FON, BRW, T, SBC. If further decline in the sector is in the offing, some of those charts reveal more risk than others. The first WCOM target (5.45) was tested yesterday and gave a little. With my last expectation being a miss, I am reluctant to say more than (5.45 and 4.66) are entry points I am watching. A more conservative long strategy would be to wait for the price to move back above the multi bottom, which should now provide at least some resistance (5.9-6.05) and buy in on the rise. Regards, LG

To: sean sanders who wrote (83040)	4/10/2002 12:34:06 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

sean sanders: Since we were discussing entries for WCOM...I took an initial long position in WCOM at 4.46 today. All my intraday models are in the oversold range but one and its close. In addition, my daily model is in the oversold range as well. This was the line up in early February, however I am expecting the multiple bottom that gave way yesterday to provide resistance to any rally. So, any upside may be limited at least initially. My intraday data service is showing the current P/E at 9.5. Of course, there is still a mountain of debt. WCOM still has an unfilled gap-down above 8... Then of course, there could always be more down...<g> EDIT: I will be trading this initial position as an intraday trade, until it gets some profit pad under it... Regards, LG