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Technology Stocks : Stock Swap -- Ignore unavailable to you. Want to Upgrade?

To: Trader X who wrote (16158)	2/3/1999 7:17:00 AM
From: Andrew Vance	Read Replies (1) \| Respond to of 17305

AV--we have a market of stocks and we have been warning of this profit taking situation for a few days. Most of the readers were well positioned to exit with profits prior to even Monday's reversal. Just look at how much NVLS, ASYT, WFR, and CYMI fell this week, just to name a few. We were out in advance of these declines, for the most part, with LLTs in place. the stocks we mentioned have had specific attractive buy zones for a number of weeks. we have seen these stocks reverse to those entry points and people are waiting for a bottom and then take advantage of the bargains. However, when you can exit ASYT at $26 and get back in at $22, you have done real well for yourself. Same holds true for getting into CYMI at $18 or less and then exit in the $27-$29 range only to re-enter at close to $24. These exit strategies which allowed us to "beat the street" to the exit and allowed us to decide whether to get back in on previously established entry targets, have yielded significant positive results. A ver specific set of examples: 5000 shares of CYMI exit at $28 and back in at $24 = $20K extra cash 5000 shares of ASYT exit at $25 and back in at $22 = $15K extra cash The extra cash was used to buy 4000 shares of WFR at $8.75 (with a little bit of cash added) End result is the same shares of CYMI and ASYT as before the exit AND 4K shares of WFR for the effort. All 3 stocks recovered about the entry price and we have targets in place to ensure we do not fall below the entry prices. We will then walk away with profits even if Today these stocks start to decline. Bottom Line: Having both an exit and entry strategy in place allows you to react to situations such as this. It allows the investor to react quickly enough when an obvious over reaction took place. do your homework on WFR and you will discover why the purchase of WFR on Tuesday and Monday was a no-brainer and a gift. I will go out on a limb and say that CYMI might recover even more over the next few days and ASYT is primed for further gains based on pending news that I expect. Finally, in a down market where red ink was everywhere, those of us that decided to enter MCHP at the $30 entry price did either one of two things: 1 - got in at $30, only to see it drop to $28.88 on Monday and then recover to close at $34.31 creating a 10% gain in 2 days. 2 - waited for the other shoe to drop and got in at $28.88 and were presented with a ~19% gain in 2 days. Unfortunately, I was in the first group and not the second. Ispent a great deal of time devleoping my own stable of TA tools and devloped both the entry and LLT exit strategies that have been quite successful for RadarView readers if they chose to react to these inputs. Again, it is a market of stocks and not a stock market. Even WAVX performed admirable given the market conditions. The exit strategy is in place and will be triggered if and when this starts a reversal. Good Luck to everyone in their investments during this tenuous times. I for one, have cash on the side for any further declines but have been able to strengthen existing positions and to diversify into other positions. As always, I can ride out the storms better than some, but I walked away with a gift of 4000 shares of WFR at ~$8.75 for close to a 12% gain for the day. In cold cash, it is roughly a free $4K for the day. This was a good day and definitely not indicative of what happens every day but it does illustrate RadarView's way to profit in a down market. Andrew