Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: TraderAlan who wrote (4384)	3/25/1999 9:07:00 AM
From: AlienTech	Read Replies (1) \| Respond to of 6021

>>Definitely not a buy signal. I had NETA as a Bear Hug two day's ago. Ugly move.<< HUH OH! SYMC is next...... Bear Hug This dynamic bull market has taught painful lessons to those seeking profit from a stock's decline. Many experienced traders now avoid the art of short selling completely and stick to popular momentum strategies. But well-rounded technicians miss out on high profit opportunities by avoiding clear setups that flag imminent declines. Take the plunge and overcome the bull by aligning your short sales to low risk market conditions. Ironically, the completion of a short squeeze generates excellent conditions for short sales. As upside momentum ebbs, supply-demand imbalance shifts to the sell side and market players reverse the short-term trend. Using Fibonacci retracement, traders can measure a squeeze better than the insiders. This forced rally can't carry beyond 62% of the prior fall without real buyers. They often get washed out well before the squeeze ends. Don't chase a rapid decline with a market order. Without any up ticks, you'll get crushed on a bounce just after getting filled. In fact, avoid short sales completely during dramatic falls. When chasing momentum, safe exits vanish and risk escalates dramatically. The first rally into a sharp down gap provides a near-perfect short entry point. When the gap marks a breakdown from a topping zone, search for a stop gun low (doji or hammer) somewhere near the bottom of that pattern. This low bar flags where price will likely fail. But watch out. Price sometimes gaps back in the opposite direction. In that case, trades must be exited immediately as the prior signal is negated. The key to successful short sale day trading lies in locating shortterm support and resistance levels. Note how breaks of hidden support triggered immediate and significant declines during this Creative Computer correction. The safest entries for shorts always lie close to key resistance so stops (mental or physical) can be placed just on the other side. Simple moving average crossovers flag buying and selling pressure. Signals in the direction of the daily trend tend to be more effective than those against it. Moving average lengths should correspond to some logical structure, such as the longer one being twice the length of the shorter one. Another interesting short sale may arise when price constricts into a very tight range and volatility falls off. Positions can be taken within this quiet zone while random up ticks allow easy entry. If the trade works, price will quickly expand lower. Should price step out of congestion against your position, exit quickly. When other factors support a decline, this trade has an excellent reward: risk profile. Even with no cross-verification, you'll know immediately when the trade fails and can cut your losses economically. Remember the decade-long secular bull and its natural upward bias. This reduces the odds your short sale will be profitable. Rallies during weak market conditions offer the best environment for short selling. However, the smart trader can always locate weak stocks that no bull market can help. Concentrate on these before tackling the more difficult task of trading intermediate corrections in up trending issues.