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Strategies & Market Trends : You buy a stock. It goes down, now what? -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (10)	7/7/1998 1:42:00 PM
From: Bald Eagle	Respond to of 112

Since you mentioned ADPT and that is one that I am in right now, I'll put together all my records and record exactly how I am doing with this one. I have been buying and selling calls. Most recently I sold July 15 calls for $2 which look like they will expire worthless, so I should be able to sell some more in a couple of weeks. I know I'm down on this one, but not nearly as much as I would be if I hadn't taken defensive action. I'll put my records together this evening when I get home and post them.

To: Investor2 who wrote (10)	7/7/1998 3:23:00 PM
From: E. Graphs	Read Replies (1) \| Respond to of 112

Investor 2, I'm not familiar with this stock, but here's what I see from just looking at the chart. The stock really broke down at 50. And, what was that that killed 40 support, a 2 for 1 split?! Well ok, if we didn't get out before the split (I'm assuming it was one), it took us to 20. The stock then rose to ~26, but fell back to 20 support. Things start to look worse when the stock rallies again, but is not able to do better than ~24 (~50 pre-split), this time falling back to break ~20 support and then down to [it looks like] 12/13. The bounce takes it to ~16 7/8 (~35 pre-split)....... I would consider this reminiscent of the action at 40 pre-split. This is my exit. I could have sold at 50 (a break down from a triangle), or 40 (support/resistance before the split)........or the second time it fell to 20 (after the failed attempt to reach 26 again). But, if I hung on until it broke support at ~20 then 16 7/8 is what I have left. A lousy situation void of all happiness, to be sure, but once I'm out I'm taking a tax loss and making that lost money work for me. Plus, I will then immediately reinvest my remaining cash in a stock with more positive technicals, which will hopefully start improving my situation. Later, if I am bottom fishing and I want ADPT back (I can buy it anytime after a month has gone by), odds are that it will be the same price, or less than what I sold it for. (all just my opinion.....please, take it fwiw) askresearch.com Hope this helps. E!