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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: pcyhuang who wrote (1086)	8/2/2007 11:04:36 AM
From: pcyhuang	Read Replies (2) \| Respond to of 5891

Re: AHM's candlestick pattern AHM's trading yesterday (Aug. 2)formed a Bullish-Hirami candle stick pattern. Today's early trading has confirmed a bullish reversal. Bullish Harami Pattern is characterized by a small white real body contained within a prior relatively long black real body. "Harami”is an old Japanese word for "pregnant”. The long black candlestick is “the mother” and the small candlestick is “the baby”. Recognition Criteria: 1. The market is in a bearish mood characterized by downtrend. 2. Then we see a long black candlestick. 3. We see a white candlestick on the following day where the small white real body is completely engulfed by the real body of the first day. The shadows (high/low) of the second candlestick are not necessarily contained within the first body, however it's preferable if they are. Explanation: The Bullish Harami Pattern is a sign of disparity about the market’s health. While the market is characterized by downtrend and bearish mood; there is heavy selling reflected by a long, black real body however it is followed by a small white body in the next day. This may signal a trend reversal since the second day’s small real body shows that the bearish power is diminishing. Important Factors: The decisive fact about this pattern is that the second candlestick has a minute real body relative to the prior candlestick. Furthermore this small body is completely inside the larger one. The Bullish Harami Pattern does not necessarily imply that a rally will follow. Market usually enters into a congestion phase following the Bullish Harami. We may need a third day confirmation to be sure that the downtrend has really reversed. This confirmation of the trend reversal may be signaled by a white candlestick, a large gap up or by a higher close on the third day. pcyhuang

To: pcyhuang who wrote (1086)	8/2/2007 3:39:15 PM
From: pcyhuang	Read Replies (2) \| Respond to of 5891

re: AHM Sam and H G Eichorst, Referring to my earlier message: Message 23752133 I think that Michael's brilliance will be noted in the history book of finance. His brilliant moves will not only save AHM but also the mortgage industry. His brilliance includes the cancellation of the promised dividend to save maneuvering liquidity, his long delay in silence before reopening the stock after allowing the media plenty of time to spread the impending bankruptcy rumour. Have you noticed that the moving up of the stock is also helping other players in the industry. Because of Michael's moves, I believe that the market will perceive that the bottom of mortgage saga is near.... My mid 4 figure position has 0 cost -- all paid for by profits earned from the earlier setups in AHM's option trades. pcyhuang