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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (2996)	12/12/1998 9:54:00 PM
From: DayTraderKidd	Read Replies (2) \| Respond to of 90042

Daniel, I am using this strategy now becuase the market is at or near all time highs and displaying a lot of volatility. Its main premise is that no stock goes straight up or straight down. Yes, if both stocks trade in tandum then I will immediately win on one stock and lose on the other. However, that can only happen if I choose to sell both stocks at the same time. I did quite well last week selling with winner and adding to the position of the looser at the same time. I would not consider doing this with just any stocks but Seek and Xcit both move several points per day and are currently moving in tandum. I don't recommend shorting one or the other after it gaps down 2 points at the bell. I would tend to long that one and I do not establish initial positions at the same time for obvious reasons. Currently holding 500 xcit short 53 3/4 500 seek 41 3/8. I also set tight stops on my positions.

To: Nazbuster who wrote (2996)	12/13/1998 7:26:00 AM
From: CynicalTruth	Respond to of 90042

Daniel... "All the TA failed me this week for some reason. I'd like to learn from it, but haven't identified the core reason. Perhaps, with options expiring soon, the Pres. in trouble, and tax selling pressures, it was just a schitzo market and I should avoid these times altogether." I've seen this in the past and it usually means a change in overall trend. If you're using "go long" indicators and they start to fail look to go short instead. Right now I see an intermediate term trend top with the indicators overbought and turning down..... be careful and know where you will get out..... After looking at 1000+ charts this weekend, I don't see much that looks good. XYLN should signal a short term buy in a couple of days... look for higher highs and higher lows before jumping on. My 2¢ only.... John