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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (19242)	7/16/1998 8:44:00 AM
From: Wayners	Read Replies (2) \| Respond to of 45548

I've been lurking. Been doing some plays on NSCP and EGGS, mostly long but some short. On picking bottoms the hardest thing is getting it to less than about a $1 range, especially on more random--more unpredictable stocks. With COMS I'm not expecting any opportunities under $28, but if they appear for real short periods of time, it would pay to take notice and pick up shares. When I say break much higher I mean a retest of $32 1/2. We've got a few daily highs of $31. A break of $31 shows good momentum and it will get some shorts to cover but it will also attract real short term momentum day traders for a quick move to $32 1/2. I recommend using buy stops in order to get any consistency in short term trading. Everytime you buy into a situation where the volatility is really low and volume is low because a stock has been consolidating, you are taking on a lot of risk because the stock can easily move against you. You can play the odds as to breakout direction, i.e. go with the direction of the underlying trend. However, that is often not good enough. I want to get these right 90% to 100% of the time. The only way to do this is with buy stops above the consolidation area--usually some kind of pennant, wedge or triangle. I've gotten breakout directions wrong enough times in the past such that I no longer take the gamble on breakout direction. I might try COMS for a daytrade today on the long side. I'll have to look at the intraday chart and pick buy in points.