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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Michael L. who wrote (15501)	4/26/1998 1:43:00 PM
From: Doug R	Read Replies (2) \| Respond to of 79273

Michael, Here's a PM I sent yesterday to a lurker re MDIX. I agree with you about the difficulty presented by various aspects. The warrants are much less of a problem now. Instock posted a press release on the MDIX thread that stated 75% of possible dilutive garbage has been removed from play by the co. "I'm having a difficult time with the projections for MDIX since it's so heavily day traded. I'm using a gap up as verification for a possible 2.91 top. This assumes a gap over 1.18. An "irrational" top of over 4 is also a possibility. I get a top of 1.19 if there is no gap. About selling into the gap, that would have to be your own decision. If, when you bought, you had a target in mind, that should be considered. If I was already in the stock, I would hold through any dip after a gap with a mental stop for 1/4 of my position at 1, another 1/4 at .90 and another 1/4 at .80 assuming that I held enough to make it feasible. If, on the other hand it gapped and continued, the 1/4s would go off at 1.50, 2 and 2.50. It's best to have a plan in mind to remove emotion. Most of the TA stuff I do is not found in any book that I know of but I do give an occasional seminar to teach my methods. Books that I recommend are "The Handbook of Technical Analysis" by Jobman, "Technical Analysis Explained" by Pring and for the most basic stuff, "Using Technical Analysis" by Pistolese. Good luck with MDIX on Mon. Hopefully I'll feel comfortable enough with the open to join you. In that case, I'll post my exit(s)." Doug R