Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : WELCOME TO THE CATHOUSE -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (1042)	5/3/2002 12:13:22 PM
From: ivan solotaroff	Read Replies (3) \| Respond to of 1065

Godot, I don't look at this as a viable strategy in a bear market. If you're still interested though: From Post1: The basic rules for playing these cats, known as PGDCEBs (Post-Gap Deat Cat Exhaustion Bottoms) are as follows: A stock gaps down, from close to open, 30% or more, usually on volume five to 30 times greater than average. Over the next 3 weeks (15 trading days) a down trend often results as more holders steadily throw in the towel and eat their loss or the post-gap momentum players take gains/say: "What am I doing in this piece of ..." The extreme oversold condition reaches a point of opportunity on a day when a NEW LOW is made on GREATER VOLUME than each of at least the previous 3 days ... an exhaustion bottom. On that day, the BID must close OFF the low, preferably by TWO TICKS or more. The ensuing reaction produces an average gain of 28%. A stop-loss of just 2 ticks below the signal day low is HIGHLY recommended. It must be stressed that these are extremely perilous situations, as one is literally working without a net. Many PGDCEBs return to new lows after the upside reaction and signal again. These stocks develop a "signal history" which can be very helpful in assessing the potential for any future trade based on the signal. A cat with a poor signal history should generally be avoided. Ivan