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

To: bdog who wrote (17346)	5/21/1998 2:13:00 AM
From: Doug R	Respond to of 79504

Bondedog, There are two, sometimes competing, factors involved when trading based on TA. Technical targets vs. profit protection. One's time horizon certainly becomes a consideration. I sold ELGT just prior to the break below 3 5/8 in order to increase my exposure to ONTC. ELGT is still viable but I saw too many trades at 3 5/8 to think that it might hold there. I play as few stocks at a time as possible since I am of the opinion that there is such a thing as too much diversification. It only holds you back by increasing your exposure to a "random" event...like the satellite fiasco. Diversification is fine in a sideways market but even though there seems to be advance/decline dismality since the technical sell signal 3 weeks ago, the overall impetus of the market is UP. The support lines on ELGT are all intact. The time horizon seems to be shifting though. I'm raising my own comfort level of accumulation of VCR to 3 5/16 now. That doesn't mean that it might not trade lower than that. It means that since I bought it under 3 1/4 to begin with, I'm not averse to paying 3 5/16 at this time. Doug R