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

To: Rashid Garuba who wrote (3818)	10/12/1998 9:08:00 PM
From: JACK R. SMITH JR.	Read Replies (1) \| Respond to of 59879

Rashid, Just Gann numbers from the late 94 low to the recent high. The number I gave represents something like a 62.5% retracement. I could be off here and it will take some time--not tomorrow, ok! Trader was off by 5 points on the close today on the s&P fizzling at 1000. Shame on him--sloppy work VVVVBG!! I see today as a probable high and we might bounce between 950 and 995 while the dominant trend validates its self. We could go as high as 1045-47, but probably not. Gold and bonds will move in opposition to any market move in my estimation. If you cannot watch the market continually and have your alerts set close, you should have stops in place and even those are no insurance in an extremely volatile market. Stops can be breached to the point that it becomes nauseating. Do not get the idea that I am a big trader, because I am not. I have experience in markets that get wild, and where the limit moves would make you puke or make you extremely happy. Just try getting out of a limit down move when you are long! You can hedge those markets with opposing options, but you better watch your stuff close, if you know what I mean! Most of you guys are pretty quick and fluid and you are probably ok. Limit losses, limit losses, limit losses, and nothing wrong with taking a profit. If you let it run and follow with ratchet stops, all the better. The mm's and floor guys are great at knowing where those are likely to be and they are good at taking them out, so keep that in mind. In a heavily trending market, I would leave them a little loose and as my indicators tell me a possible top is near, I would tighten them up. Same true in the other direction. The trend is your friend until the end of the trend. Momentum investors on the upside just cannot believe that the trend is over and lots of them are taking it in the shorts big time. The trend is down and it will be until it changes back to the upside. Sell rallies here until the market changes! Speaking longer term, of course! Day traders should always have the market direction on their side, in my very humble opinion! JR