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Strategies & Market Trends : Pitbull Investing Strategies -- Ignore unavailable to you. Want to Upgrade?

To: conrad grant who wrote (562)	12/18/1997 10:01:00 AM
From: Doo	Respond to of 789

conrad: I see your MDC idea never gave a chance at a "safer" price. Low volume draw downs after a breakout are difficult to read in thinner issues like MDC. For a nice example in a more liquid issue, check out the chart on PAYX. Huge breakout to 45 or so, followed by a draw down in volume and price. When it broke out, it was a Pitbull. I bought just under 41 a couple of weeks back, and now it's on the verge of a breakout again. Notice, however, that if you'd bought it on the open the day after it broke out, you'd have been stopped out on price and RS. Buying after a dry up in volume, but ignoring RS stops, allowed me to hand with the stock with a stop at 38 (less than a PB price stop). Will it breakout, will it fail? Who knows, but my price stop now will move up to make sure the worst that happens to me is a scratch. For an even nicer chart showing a draw down situation, look at VIDE. Looks ready to resume. Not a PB, however. Jeff