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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: bob wallace who wrote (28052)	11/9/1997 6:29:00 PM
From: Autumn Henry	Respond to of 58727

Wow, Bless you Bob for your intelligent rendering of shorting. Very very nice. I have printed it out. I have kept my trading life as simple as much as possible. When I have been with a technical analyst teacher and "saw" a downtrend for the first time via her eyes after more than a year in the market (!!!!!) and thought--gee it has been there all the time! What I wondered are what are the signs that it is starting to catch more of the move and that is what I think there are very valid clues on and important for. I also saw a tape at a meeting whereby they showed some guy from another seminar showing just trading from trend and the usual character of a trend. I could see how you could just trade from that. Or dinosaur backs.....:) I also learn from redunancy....:)......this stuff is so "thick" for me I have to revisit and revisit and build and build. Yes, intutition has been my rich friend. My fear and throwing it away have been my enemies. The November Stocks and Commodities mag has a great article based on Murphy's new book and it has a great "simple" new applicable to my life trading technique. Of course, the author goes on the complicate the whole thing but I can do the basics and have it mostly work...let me submit some of the key recipe formula perhaps it will give you something interesting. I also find that with this market this type of style of trading might be very appropriate. Will just give you the main point: "The Weekly Reversal" What's a weekly reversal and how does it work? Here's a refresher on this intriguing formation. What's a Weekly Reversal? Murphy defines a weekly reversal and shows two examples: The weekly reversal is another simple (my favorite word..A.H.) market formation that's worth looking out for. An upside weekly reversal occurs during a market decline and can be seen only on a weekly bar chart. A stock starts the week with a lot of selling and usually breaks under some type of support level. By week's end, however, prices have turned dramatically upward and close above the previous week's price range. The wider the weekly price bar, and the heavier the trading volume, the greater the significance of the turnaround. A downside weekly reversal is just the opposite. Prices open the week sharply higher and then collapse at week's end. While that pattern along isn't usually enough to turn the chart bearish, it is enough to warrant closer study of the situation and to consider taking some type of defensive action. Weekly reversals take on more significance if they occur in the vicinity of historic support or resistance levels. ****************** Thanks for talking to me about shorting at the open. I find sometimes when I "talk out loud" about my pluses and minuses that I can support one and help to mitigate the other. When I am just "quiet in my mind" the situation seems to go on and due to the fact that this is such an isolated occupation in so many ways the isolation on just talking about all this distorts many feelings I have regarding my performance/progress.(usually to the negative I'm afraid) So I am most grateful for your posts. Good luck this week Bob. Autumn Oh, btw on intuition. Yes, sometimes I don't "have it", but when I do it is wonderfully scary. Like on Friday......I could "hear" (I use one minute ticks per stock and spx over it) the market high via TXN which I was watching at the time and the low......it was as if there were a crowd of people (toward the high) bidding and bidding and then it went quiet and the energy was gone......the reverse happened at the low.......quiet to the beginning sounds of lot's of energy...... I "technically" look for patterns on the one-minute scale that are on the macro chart scale..... quite amazing for the little farm girl from a town of 800............who was never supposed to amount to much.....:)