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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (34986)	2/4/2003 4:59:29 PM
From: NW_Trader	Read Replies (3) \| Respond to of 59879

Hi Mark, Think you're right on most points, but as a trader, I got to work with what the market will give a bit sooner -- that's been by shorting of late. Anyway, thought I'd drop by to suggest (for those with a tolerance for risk) a new strategy I've come to think of as BTM - Bop the Mole. Named it for the carny game where a simulated mole (or gopher? some sort of rodent anyway) pops up out of one of several holes on the playing board and the contestant has a padded mallet to hit the "mole" for points. In the strategy, we're looking for mole stocks ($7 to $20 are good) that pop up on some news or other event (and lots of volume) -- then we "bop" them with a short for a day or two. Works well when you fade the gap (as I did yesterday with RMBS), but sometimes an intraday top gives a good entry as well (as I did yesterday with CTXS). Also can be applied to a channeling stock (top of channel) or rectangle pattern that has failed a breakout. As always, tight stops a necessity, as bopping a top is as difficult as catching a falling knife. This and a few other tried and true strategies have been working well. I'm now mostly short in the trading account, or in cash overnight, but trading RMBS last week was like the old days - great intraday point moves, had 12 round trips one day alone, gap up openings that made one excited to see how much you'd "made" over night, etc. We'll see what happens tomorrow, but think that CP at the UN may just be an excuse for the markets to do something extreme (what I've no idea). Peace and Justice --- Patrick