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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (7526)	4/7/1998 1:59:00 PM
From: Nikita	Read Replies (1) \| Respond to of 42787

Chris and others I'd like your opinion on CMTL. Itlooks good to me on a technical basis and considerable insider buying. Also, strong EPS last few quarters and strong back log of business orders. N.

To: Chris who wrote (7526)	4/7/1998 9:07:00 PM
From: Robert Graham	Respond to of 42787

The NASDAQ today went down another 1.5 percent. The DJIA went down about 2/3 of a percent, and the S&P 500 went down about one percent. Total decline from tops are 3%, 2/3%, and 1.5% respectively, with NASDAQ in the lead for percentage of points lost. Looks like the retrace of the NASDAQ is in progress. It should be near its 20 day MA right now. Tomorrow will see if buyers will enter the picture. The S&P 500 went down more than I expected, but I should not of been surprised. The S&P 500 and the NASDAQ appears to have been more closely linked during this rally, which has been most particularly the case during the last month, than the DJIA and the NASDAQ. I am not expecting a significant market correction here. The S&P 500 has been too strong with no slowdown in momentum even though this index is overextended to some extent. Just my opinions of course. I still want to see the disposition of some key sectors and key stocks when I have the time. I have not been following this market as closely as I have been wanting to. This will change. I have been reading a book by Martin Schwartz, one of the traders highlighted in the "Market Wizards" book, which I think some of you will find interesting. This book is titled "Pit Bull" and he is a heavy-weight S&P 500 futures trader, along with trading stocks and options and treasury bonds. He started as a floor trader and then set himself up in an office separate from the trading floor while maintaining his membership on the floor in order to limit his trading costs. Martin is able to do this by trading through a representative of a clearing house that operates on the trading floor. This guy has made $5 million per year, has made well over $100,000 in one day and lost $2 million in one day by being on the long side during the 1987 market crash. However, during the crash which lead into the following day, he made a good part of it back by taking the short side. This book documents his experiences as a trader along with some on his personal life during the time he covers. Martin goes into some of the thinking and approach that is behind his trading, giving specific examples of trading scenarios like the October 1987 market correction. He scalps for small profits moving many shares at a time, each trade lasting usually several minutes with some overnight trades. His approach to trading is primarily technical, mostly charting with a couple indicators, and he uses mental stops. Martin Schwartz ends his book by covering the tools and indicators he uses, including information services and newsletters. He lists "The Chartist" as one newsletter that he follows. Unfortunately he does not cover the specifics of his charting technique and system. This book has turned out to be a lightweight but at times interesting read. Those of you interested in getting a glimpse on what floor trading and futures trading is like, this book is worth a look. I found it in my local Borders bookstore. Bob Graham