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

To: sandbag who wrote (7497)	3/6/1999 10:50:00 AM
From: majormember	Read Replies (3) \| Respond to of 59879

Barry, >>When the stock is dropping and you want to sell your long position in order to expose the short position, you legally still need an uptick/upbid.<< Even if I bought the stock long at one price and sold it short 10 minutes later at a different price? What if I have two accounts, one where I short the stock, one where I go long? Surely the uptick rule couldn't apply. >>Also consider that if the stock drops below $5, it may no longer be considered marginable and you are at risk of getting the stock called back. At Datek, MANY stocks are not marginable, yet you can still short them. It shows the non-shortable stocks that with a "NS" (no short). I would not normally hold a short below $5 anyway. >>> This assumes you can close your short before the move up. I might not maximize my profit if it's moving up/down fast on news, earnings, upgrade/downgrade, but I'd probably not lose more then 1/8-1/2 point. Of course, if that's the extent of the move, I break even, but usually it will move higher/lower so I can scalp at least 1/2 pt. >>If it gaps and does not continue up, you will be in a break even position still. Not if I keep the "Box" after the gap up or down, until I can determine direction. At least it's a break even. Better then a loss. I think I'll paper trade this strategy first and see how it goes. >> Since I am short EGRP and my indicators are pointing down, I am looking for the opposite of Viagra.<G> Any suggestions? When I was in camp, the story was Salt Peter was mixed in the mashed potatoes. If that doesn't work, the pending suit by N.Y. Attorney General, as well as some S.I. members who got burnt when EGRP crashed may provide the downward impetus you need. Regards, Skane

To: sandbag who wrote (7497)	3/6/1999 11:34:00 AM
From: peter n matzke	Read Replies (1) \| Respond to of 59879

Skane, >When the stock is dropping and you want to sell your long position in order to expose the short position, you legally still need an uptick/upbid. the above mentioned may not be correct. When you initiate the box, the short must be purchased on an up tick or up bid of at least 1/16. When you sell the long has no effect or relationship to the short position, other than any applicable margin expenses. The long can be sold at any time, up or down tick. The same is true of the short position, it can be sold at any time, up or down tick. The only restriction relates to the purchase of the short position. Many brokers do not allow boxed or hedged positions, because they have difficulty in monitoring the positions for compliance purposes, but it is 100% legal. regards peter