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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: sandintoes who wrote (87)	5/14/2005 2:23:53 AM
From: Walkingshadow	Read Replies (2) \| Respond to of 4814

HLSH bounced off support from the lower BB, forming technical buy signals from oversold levels at the same time: 139.142.147.218 This would indicate that HLSH is a good long position for a short-term or swing trade. However, note that HLSH is in a long-term downtrend: stockcharts.com[h,a]daclyyay[dd][pb50!b200][vc60][iLg!Lp14,3,3]&pref=G This stock meets all my criteria for a downtrend, and these criteria are a bit more stringent than the criteria you may see elsewhere: 1. stock trading below the 200 sma 2. 200 sma is downsloping (not horizontal) 3. stock has formed at least one lower low and a lower high below the 200 sma 4. stock is trading below the downsloping (not horizontal) 50 sma 5. the 50 sma is below the 200 sma, and both are downsloping. Now, the 50 sma is at $5.35 and the upper BB is at $5.58. So If I were trading HLSH long, I would be looking for an exit at $5.35, or at the very least I would tighten up the stop quite a bit. Then, I'd be looking to flip short as soon as HLSH showed signs of technical failure. Also note that because HLSH is in a downtrend, a short position is less risky than a long position in general. This is general principle: long positions are riskier than short positions in downtrending stocks. T