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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Randy Arnold who wrote (2909)	4/9/1998 10:52:00 PM
From: Magnatizer	Respond to of 29382

Randy The ACT is the floor and the IL is the cathedral ceiling. Stocks trading with the ACT/IL relationship in tact are like super balls. They bounce off the floor to the ceiling and back down to the floor only once they hit the floor again they have lost some of their energy so they only bounce back so far. Some stocks are the mega super balls and they bounce back and forth several times. Some even shatter the roof but they are uncommon, not many super balls have access to steriods <VBG>. As with any relationship it is best to let the profits run until the stocks comes back off the IL. Then, if one is so inclined, a stock could be shorted with the ACT (floor) being the point of coverage. Where the stock would be a good trade or long candidate again. ht david