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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (3492)	10/3/1998 2:25:00 PM
From: TATRADER	Respond to of 59879

NEM,If the XAU holds above 72.50, the neckline, NO! Then you are looking at 25.00 as pullback area.... However, I am shying away from NEM, it hit my target of 27.50-28.00 on Friday...It is now on emotional overdrive, and I am not on my computer all day long to track it with a tight trailing stop, so I won't be there to determine when momentum shifts......As you know the market always overreacts both up and down...Regards, Mark Gold Analysis for Monday: Most gold stocks closed strongly on Friday, suggesting that momentum will continue at least for part of Monday...My emotions got the better of me as I took profits on PDG..Mistake...If you study the chart on PDG, it held above the neckline at 15.00...If 15.00 holds on Monday close, it suggests a several point move yet to the upside... I firmly believe the funds have been methodically acquiring the blue chip gold stocks...First they hit NEM, ABX and GGO, now PDG, HM and ECO..... I have done scans on 31 gold stocks, and here are the best 6 for Monday... 1.ASL (under 10.00) I presently have a very large position in this stock...The historical volatility of 6 and 10 day is still 50% below the 100 day...And you know this is day 3 of HV...I predict that within the next 5 days this stock will make a sizeable pop above 10.00...ASL is my favorite gold stock right now... 2.PDG A hold above 15 on Monday means a potential 3 to 5 point move...This is the next NEM....WHY I LEFT THIS ONE, I'll never know... Guess I figured it was extremely overbought and that the traders would take it back under 15.00.... 3. HM--I have also a very large position in HM..The neckline on this one is 13.00...I know I should follow the rules of two days above a neckline confirms a break, but I bought at 13.00, taking a chance that since the XAU was moving up, the stock would hold...HM closed strongly and I am looking for a several point move on this one as well...Looks like I might have nailed this one, and ASL... 4. BMG--Rashid jumped in and out of this one...I studied it and determined I would wait until the overhead was cleared out at 7.12... As I calculate it, we still have between 4 to 6 million shares yet to trade before we have a major break... However, it is now on my breakout watch, since it did a Reversal New High Hit.. What is that? Stock makes a new 60 day high....It experiences an outside day...Higher High and Lower Low...Likewsie, the High low range needs to be the highest in the past 5 days...(this is vintage Cooper)Here is where it falls a bit shy of the setup...Normally the setup requires the highest range in the past 5 days...5 days ago BMG had a higher high low differential..Believe it was 93 cents...Friday was only 82 cents..So I will see if the pros give us 2 million plus volume on Monday and 7.12 on bid before I entertain entry... 5. MDG--merely a watch..An expansion breakout on Friday...Keep an eye on volume levels(like to see 200,000+)and whether 5.37 on bid is taken out...Rashid, you found a good one, just needs gas... 6.ECO--Made nice profits on this one, but left too early...Appears now that funds are acquiring...Did not do overhead study at 3.00, but once broken, target area is 4.25.... Remember always the rules of a gizzard trader 1.Gizzard traders put in a stop order immediately after they purchase a stock 3 to 5% below entry...Some golds you may go as high as 7%.... 2. When a gizzard trader has a position move up 5%, he moves his stop up to the price he purchased it at, thus setting up a potential scratch trade.. 3. Once the stock moves up another 3%, the gizzard trader moves his stop up 3%..and continues to trail his winner with a trailing stop.. 4. A gizzard trader only holds a stock overnight if it closes strongly.. 5. A gizzard trader never holds a losing position overnight..... Follow these rules and you may make money as a trader....Don't and big losses will cause you to say goodbye to trading for good.... Regards, Mark