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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (11309)	3/25/1999 8:56:00 AM
From: AlienTech	Read Replies (1) \| Respond to of 43080

Burp! I didnt know Alan was so create. We should ask him what it all means. 1. Dip Trip AOL 117 -4 325674 GP 73.81 -1.25 14117 MRK 82.38 -0.62 37270 RSLC 32.13 -3.37 2527 VRIO 43 -2.5 12552 2. Power Spike BEAM 8.94 3.38 81211 CTL 68.31 -3.69 52323 REV 22.25 5.2 44942 SOF 36.25 7.87 13624 VECO 38.19 -3.37 18195 3. Finger Finder AZO 31 0 17735 BCHE 20 -0.19 18051 GEOC 42.88 0.88 3766 MEDQ 27.75 0.06 7193 SPLS 31.31 -0.19 42180 4. Coiled Spring FNDTF 28.81 -0.07 1062 PCMS 8.13 0.13 9850 RDA 34.44 0.06 3827 UNFY 13.81 0 1257 VYTL 25.75 0.5 4368 5. Bear Hug BEAS 14.19 -0.44 2796 PRLS 8.25 -1.13 1189 SUIT 25.13 0.25 1697 SYMC 15.94 -0.11 7110 UFS 41.13 0.19 2197 6. Hole-in-the-Wall BJ 24.19 -0.12 3125 BOW 40.63 -1.18 7465 CC 72.13 -3.43 14075 LSON 53.88 -3 1476 7. HRE Classic BEAM 8.94 3.38 81211 HRE Classic candidates are found by looking for stocks hitting new highs that also are coming out of congestion. At one time, the scan was limited to stocks with earnings above the 80th percentile but many recent examples don't reflect this limitation. Candidates must be breaking through their 52 week highs. Once candidates have been located, visual inspection must be conducted by the trader to determine whether or not the chart shows a breakout from congestion. HRE Classic does not search for stocks that are only making a series of higher highs but don't meet other conditions regarding this basing prior to the new high thrust. As tradeable stocks dry up, Smith notes this is an excellent indicator for a market correction. The strategy has much less value during corrections as the number of stocks meeting these characteristics often drops to zero and remains there until the market strengthens. He notes "I honestly have not found a better way to gauge how well this bull market is enduring". The Classic uses closing prices to trigger signals. This avoids whipsaws and shooting star reversals. The breakthrough to new highs must come on volume much greater than average. Clearly, Smith is a strong advocate for market order entry. He notes that "you'll occasionally get a big gap up and find yourself in the hole. But, this is far outweighed by the times you're in on a gap up ... and the stock never looks back". But he does pass on candidates is if they've made huge one-day moves. While Smith utilizes preopen market orders when he chooses to enter, this strategy is not suitable for many traders. Defensive measures should be exercised to avoid unsustainable run-ups prior to opening (large, gapping moves). Intraday traders can time entry through examination of morning gaps. If sustained well beyond the first hour, further upward movement is likely. Its best to avoid chasing runaway moves as the prospects for violent reversal increase dramatically. Also, while Smith trades lower volume stocks, HRE Classic limits its search to those issues compiling at least 150,000 shares on the breakout day. Many different exit strategies can be employed. Smith uses an immediate sell limit order that includes both a profit target and a stop loss. These have been adjusted as back testing measures the final result. During early 1998 he used a straight $2 profit target and $3 loss. Individual traders need to tailor exits to their own holding periods and risk tolerance. hardrightedge.com