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Gold/Mining/Energy : Position Trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: keith massey who wrote (147)	12/13/1998 9:53:00 PM
From: The Fix	Read Replies (1) \| Respond to of 2259

Hi Keith, Sorry that I broke one of the rules of the thread. It's just that PRX is also into Natural Gas. My reasoning is that we should get a good cold snap in the Eastern U.S. in the next month or so. PRX's chart looks like a good candidate for a rebound. fIXER

To: keith massey who wrote (147)	12/13/1998 10:09:00 PM
From: JAS	Read Replies (1) \| Respond to of 2259

Keith.. very good point. The two mentioned tscn.com tscn.com The trend is your friend. Gee.. I am a poet and don't know it! Jim S

To: keith massey who wrote (147)	12/14/1998 1:33:00 AM
From: Ward Nicholson	Respond to of 2259

Objectifying the Trend: Just wanted to point something out. I have heard many people mention that if a stock drops to a certain point in the next couple days/weeks/months it is a screaming buy. This site is about Momentum Trading in Canada. I though the rule to live buy and never break was the trend is you friend. Very true. I guess the distinction for me is the difference between bringing attention to situations in which a stock already has momentum - up or down - versus bringing attention to situations in which a shift in momentum is likely to occur. PRX is a good example of the latter. PRX may be attractive at a fundamental level already, but one could not justify it as a momentum-buy. Perhaps what we need to do here is to establish some objective criteria as to whether a stock is trending up, down, or not trending at all. This can easily be done using moving averages. The only issue to resolve is what lengths to use. The 3 moving averages I pay particular attention to are: 15-day EMA 40-day EMA 200-day EMA Obviously the 15-day EMA is the short-term trend indicator, the 40-day the intermediate trend indicator and the 200-day is the long-term trend indicator. In "Trading For a Living" Alexander Elder explains some trading rules with respect to moving averages... "The single most important message of a moving average is the direction of the slope. It shows the direction of the market's inertia. When an EMA rises, it is best to trade the market from the long side, and when it falls, it pays to trade from the short side". Using PRX as an example: tscn.com Without question, PRX is not a buy (yet). Perhaps when we post about a stock we could try to remember to make reference to the 15-day EMA (or whatever EMA he/she prefers) as a way of anchoring his/her judgement about buying or selling that stock. WN

To: keith massey who wrote (147)	12/14/1998 4:02:00 AM
From: Ed Person	Respond to of 2259

Keith, Excellent point on ignoring the trend. This can be a painful lesson to learn. I purchased Hummingbird earlier this year because it seemed to offer "good value", however, the stock declined steady since. My approach has moved recently to a combination of TA and FA with markedly better results. Ed