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Strategies & Market Trends : Candlestick Charting--The unknown indicator -- Ignore unavailable to you. Want to Upgrade?

To: Tom L. French who wrote (687)	11/21/1997 6:20:00 PM
From: MonsieurGonzo	Read Replies (2) \| Respond to of 1589

TomFrench; RE:" MS.Softie..." Great post, man ( I like to read ;-) I think we need to check old Bill's PULSE, man - I MEAN, we've been in a trading range 125 base since MAY. OTOH, Ms.Softie came through the crash completely unscathed. Unlike Gonzo, who lost $50K on INTCW QNTM and DELL since the end of last quarter :-( Boring... is GOOD sometimes... like, during BAD times. I think you've got a good read on MSFT. It's that 50+ P/E, right ? Kinda hard to swallow - still, Win98 coming out in a few months. This thing ain't going DOWN, unless the whole market crashes to sub-7000; but then, if that happens, I'D BE THE FIRST GUY BUYING MSFT LEAPS. Back to the candlesticks; yeah - I call that a Doji. I mean, like Esteban says - the psychology (or "sentiment" as I said) is that, "Bears have met the Bulls Head-On" at this level. Well, Duh. The trading range for MSFT might as well be RAILROAD TRACKS, FWIW. If MSFT did not have such a high P/E, I would have sold PUTS every time it got down low, rather than just buy more LEAPS. ...looks like a serious of lower highs... Yeah, dig - but look at the last trading range Ms.Softie was in - back there in January (on the Weekly Candlestick Chart), Tom. What she does is break down low, make a Hammer and "Spring", and then go up, bust out of the trading range and voila! New Trading Range. The only way I know how to play MSFT is, leave GTC buy orders at the lower end (and below) of her trading range, and suck up LEAPS in increasing quantities whenever she dips down there. LMFAH JAN2000 140's (kinda conservative, I know) are a little less than $30 bucks down low, and a little more than $30 bucks up high. I dump 'em for +10% or so when she fails to bust out / hold 'em when she breaks out. She's busted out of her DownTrend ( if we can call it that ) so, like you, I expect her to fall back or {yawn} go sideways, then HOPEFULLY, the quality capital will come in and give her some "legs" to stand on, get the hell out of this trading range and make a new one +20% higher. Now, tell me this - look at AMZN Amazon Books. Made a Doji Thursday, looked bearish (confirmation) today. Should Gonzo short the socks off of that high-P/E pig Monday Morning ? (^_^) -Steve