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To: StormRider who wrote (17358)	11/19/1998 6:40:00 AM
From: Ron McKinnon	Read Replies (1) \| Respond to of 53068

XCIT I have a lot of trouble trading the net stocks they scare me they move so fast that I can not apply most of my usual trading precautions and they make me mad as hell because I have yet to get on board one for a big gain I do know this; during a few of the big moves they have made I say every day that "this is insane, nuts, out of reality; and if I had gone long every time I uttered those words and jumped on the momentum machineI would have done well trading these seems to be one of reading the tape, nothing more, nothing less on XCIT the tape says that the market does not like it as much as some of the others; YHOO AOL EBAY INKT it is in a tight range (for a net stock) 47.00-56.00 49.50-52.50 I'd only trade it, long or short, on a break out of those ranges EGGS maybe jump on if it breaks 14, or wait for a move over 16.25

To: StormRider who wrote (17358)	11/19/1998 10:22:00 AM
From: DanZ	Respond to of 53068

XCIT, EGGS. Ahmed, Like Ron, I haven't ever traded the Internet stocks. While they have made huge moves in both directions, none of them meet my buy criteria so I'd just assume leave them alone. Yes, I have missed some moves in them. The way I look at it is there are thousands of stocks to trade and for the most part, I do well with the one's that I trade. I see no reason to jump into any stock, whether it be an Internet stock, semiconductor stock, retail stock, etc... if the chart doesn't meet my criteria for entry. IMO, the risk to reward in XCIT is huge, meaning the downside risk does not compensate for the upside potential. For example, support is at 38 1/2 and 44 1/2. With the stock trading at about 56, there's way too much downside risk to make this an attractive buy, especially since there are a lot of highs in the 56 area. The risk to reward in EGGS isn't good enough for me either. It has support at about 11 and resistance at about 16. The stock is currently trading near 14 so it's in the middle of its range. Keep in mind that my strategy is to buy stocks as close to support as possible so I can bail with a small loss if it doesn't hold. Ask yourself this. Would you rather buy a stock where you only have to risk 3/4 of a point when you expect resistance 3 points higher, or would you prefer one that has resistance 1 point above and support 10 points lower? When I look at XCIT, EGGS, and many other Internet stocks, I see the latter and they are not appealing to me from a risk perspective. I agree with Ron. If I were to start trading Internet stocks, I'd probably do much more tape reading and flipping than chart reading. That's just not my kind of game. Best of luck if you trade these. Dan