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Technology Stocks : New Era of Networks (NEON) -- Ignore unavailable to you. Want to Upgrade?

To: treetopflier who wrote (297)	3/19/1999 4:58:00 PM
From: bob wallace	Read Replies (2) \| Respond to of 1222

ok realize that I am no guru I have not traded this pattern before, but it is in Connors Advanced Strategies it is based on weekly adx [adx is a mathematical model of price that measures the strength of the trend] and says that when weekly adx reaches 60 [which is very very high] then wait for the first downtick and short the stock - look for a minimum gain of 20%, maximum loss limit of 15%. this is a method that is aimed at timing the shorting of very strong stocks which have had parabolic price rises, in all the stocks I monitor there is only one other stock with an adx over 60, and that is BUD so NEON ticked down from over 60 today - I have been watching it for two weeks, so I short it at 62 - had a chance at 65 but was a bit chicken on your side there is some supportive evidence which would call either for a bounce or a reversal of this down draft, which is why I was looking for someone to talk about NEON one positive thing is that today was a very wide ranging day with very high volume - this sometimes indicates that everyone who wants to sell has sold [though this usually happens at a more significant bottom] secondly, price closed just at the 50 day moving average, which is a moving average used by many traders - strong stocks usually don't just fall through the 50 day moving average without a good fight so all in all. next week's action will be very interesting, at least to me