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

To: G.F. who wrote (471)	2/9/1998 5:36:00 PM
From: Ken Wolff	Respond to of 2120

Hi GF, How do you approach a stock that increased sharply without news but has been basing. Would you touch it as a short or wait to see if possibly there is news that has not yet come out? Generally I look for a percentage increase where normal profits are taken. For example, I will consider stocks that increase 20% or more in one day. I feel that there are always traders/investors willing to take short term profits. I look for such stocks to short. My shorting is usually for a few hours at most. In a nervous market, the consistent PATTERN is PROFIT TAKING. Traders are looking for reasons to sell. This consistent behaviour makes for some very nice shorting. Ken mtrader.com