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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (21791)	8/1/2002 5:27:36 PM
From: Susan G	Respond to of 26752

Every single time I hold a short over, I get stopped out at the highs of short covering in Europe at 4 or 5 am, only to see the market gap down or dive at the open. Last night I was short from the close at 62, put a stop in at 64 when it was trading below 960 and went to sleep early. Got stopped out only to see it hit 950 or so overnight, the market dive at the open and continue down 40 points from that short. Aaarrrgh. And the night before in that huge 5 am prop job to shore up our futures before the bad news hit, got stopped out too. Luckily I was awake and watching and shorted the top of that when the ramp was over, so I did not mind the stop out. I've found that the low of a big move down is most often at the close, as people want out - or have to sell at close due to margin requirements. Learned this the hard way, after getting stopped out overnight on BS moves waaaay too many times. When our futures take a hit, Europe and Japan cause bounces when their markets open and they buy or cover shorts. It's a great time to put on a short if you are an early bird, as our guys always sell it down - even if for just a few minutes, before the open. So I've decided it's not worth the loss of sleep, unless it's a contract with a big cushion that you are holding for weeks at a time, and can use a huge overnight stop.