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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Ken Wolff who wrote (175)	1/10/1998 5:32:00 PM
From: Ken Wolff	Read Replies (1) \| Respond to of 2120

PLAYING "DUMPER" STOCKS DUMPERS are stocks that dump greater than 20% on overnight mediocre bad news such as missing earnings by 1 cent or so. The market ALWAYS over-reacts to this type of bad news. We play the bounce once the street digests the news and determines that the news is not that bad. We focus on the turning point and jump in just as the momenum is starting at the first bottom. I NEVER buy a stock that is being investigated by a regulatory agency or is suspect of criminal activity or bankruptcy. The stock could halt trading and leave you hanging for a month or more. I will detail the methods I use to determine short-term BOTTOMS and TOPS of mementum stocks in my next posting. Ken mtrader.com