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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dave Shares who wrote (365)	9/15/1998 8:24:00 AM
From: LastShadow	Read Replies (5) \| Respond to of 43080

Shorts and Longs CPQ would be a tough one to short right now, but only because its intraday swings have covered several points. From the chart the trendline would be broken at slightly less than 30, but that would be 2 points below where it is now. As an intraday play, it almost looks ready to short now, assuming its a dwon day and it doesn't break yesterday's upper resistance. MSPG is indeed forming an ascending triangle, but for end-of-day it would need to clear 36.125 to signal a buy. But a buck and a half is a lot to give up for a short term trade of afew days, so I would look for it to break out in a gap at open and buy it if the gap is down and short it if the gap peaks after 10:30. Something else I wanted to mention here. I got a couple of emails yesterday about people playing gaps. Unfortunately, they were using a full gap strategy on days when the gap was only more than yesterday's close and still below yesterday's high. I recognize this can be a confusing issue, so if one doesn't grasp the method, please message me about it. I might not get to the response immediately, but its probably better to wait than enter unsure. Jaylyons, for example has been paper playing the gaps for some time and is getting the hang of it quite well - to the point that I use some of his numbers with just a quick glance at the chart (not recommended, but hey, sometimes I'm in a rush). The point is that he has been learning the method with multiple stocks and market conditions until his proficiency improved. That is exactly what anyone should do for any technique. The Gap strategy seems simple, and it is, but even it requires basic disciplines and guidelines. The only way to learn a method is to paper trade it first until it works for you and your picks. lastshadow