To: JC Reddy who wrote (16493 ) 6/30/1998 11:02:00 PM From: David Fidler Read Replies (3) | Respond to
JC , how could anyone be short and desperate? They are short and loving it, this thing is on the low and bids continue to be hit , plenty of opportunity to cover any shorts at much lower levels. This stock acts like cancer. The shorts are any thing but desperate. A more plausible scenario is long from 8,7,6,5,4,3 1/2 or anywhere inbetween and now wondering? Short from 8,7,6,5,4,3 1/2 and knowing your right. How do you know your right? As a professional trader the only indicator that you can really trust is price action. Allow me to give an example. You sell stock at 5 or 4 , I mean really bang it out as sloppy as possible , to make the stock look like s***.You create panic and scare out some weak longs and the stock trades lower. It trades down to 3. You're feeling pretty good, but the stock starts to bounce . At 3 and 3/4 you start to try buy some back, but no one and i mean no one cares about your bid, they only care about the offers. The offers are few and not good for much stock because the longs are strong and in control of the float. They know they are on a winner. Your trying like hell to lift offers, but they are only good for 500 shares a pop and they spaced out every 1/4 of a buck. Now the stock is 5 1/2 bid and you've only covered 1/3 of your position. You're wrong, you f****d with the wrong stock. How do you know? The price action told you so. Now change the scenario the stock trades down to 3. You sold it the same way, nothing different. You've got your line out, you're close to max so you want to see how this baby acts. You stick out a bid for small, to test the action and BANG! They wack it like it wasn't even there. You say cool. So you start to scale in some buys on the way down, not a lot, but enough. Its not a problem taking in stock, there's a seller out there. No bounce, No anything . You think to yourself " man if I hadn't bought back in all that stuff this thing would probably be a buck lower. Now you know your right. Being a smart trader you realize that every war is a series of battles and you can't win everyone .So now the promoters are pissed they still have some free stock and options they would like to cash out on but they need to firm this baby and get it a buck or two higher. You lay and wait. You let them take it up 3/4 of a buck on nothing , then you start to lay back out that stock you took in cheaper."You want to take it higher eat through this", but they aren't too hungry. Price action tells you this stock is TRIPLE N G ( no good]. Remind you of a certain stock JC? Patience will be rewarded. All the stock you can handle at 50 cents!
