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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (8742)	10/4/1998 10:49:00 PM
From: Herm	Respond to of 14162

EMAIL QUESTION ABOUT BEAR TRAPS The private email messages this week seem to center on bear traps! I'm posting this question since it would be of value to readers and lurkers. >Dear Herm, >I so appreciate your insights on the CC forum. >Can you tell me how you found the security PAYX >for a bear trap --- I would appreciate your help. And what primary >indicators you use to determine if you will buy puts? > >Thank you >Show The Lurker! Hi Lurker! I make it a habit to view quote.com because of their intra-day free charting. I can see the daily trading patterns for my stocks and the size of the orders. I have looked at them for such a long time that I can gauge if the stock is going up or down and when the stock is being shorted. Anyway, one of the pull down choices allow you to see the percent gainers, losers, point gainers and losers for that day. Under the top 10 pull down on the menu I looked at all of the ones that were making new highs. So many stocks are making new lows now that I make it my point to see which stocks are breaking the major trend. I charted them quickly and spotted the PAYX real fast since: a. the price was just about tagging the upper Bollinger Band and the RSI was very high based on the three year history for the stock. Well, now that I have the chart pattern I'm looking for I go to stocksmartpro.com for the fundamental info like P/E and earnings release dates and insider trading. PAYX was way overvalued according to the data and I reasoned that it would dump! The review below is the basis for my decision. I have seen it many times! The Bump-And-Run Reversal Theory! traders.com PAYX CHART askresearch.com MORE FOOD FOR THOUGHT ON TECHNICALS Combining Statistical And Pattern Analysis traders.com The Power Of Knowledge traders.com RSI Explained! traders.com Improving The Win-Loss Ratio With The Relative Strength Index traders.com Channel Analysis traders.com Double Bottoms traders.com