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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Dante Sinferno who wrote (20)	2/21/1998 3:14:00 PM
From: Jim Roof	Respond to of 4634

Even though I have a serious beef with Bill on BTIM I looked at BFIT and tried to see the h&s top. There's is nothing in the chart that says head and shoulders at this point so be careful! You have got to have a very well defined pattern for these things to be trusted. Yeah, the cat is out of the bag, I can short 'em too. Remember, a head and shoulders top is not confirmed until the right shoulder rallies on weak volume and the neckline is broken by at least 5% on the close. And even then the trade should be placed on the rally AFTER the initial plunge to be safe and have history on your side. A good H&S top will yield good profits about 80% of the time when traded in this way. But they have to be just right to be trusted. Jim

To: Dante Sinferno who wrote (20)	2/21/1998 3:58:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 4634

I looked at BFIT I originally shorted this at 19 and covered at 20 for a loss. Even though I agree with the assessment of the financials (my original reason for shorting), this company seems to have a dedicated management team - both in terms of building the business and promoting the stock. As such, it may still be a bit too early to short the company. It still looks like it is under accumulation and will only take a good drop if general market conditions get worse.