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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Trading Machine who wrote (6037)	4/27/1999 4:04:00 AM
From: Berney	Read Replies (1) \| Respond to of 11051

TM, Re: Pivot Points Well, the Plan was Great, the execution was somewhat lacking, but I'll take my humble profit. The last Pivot Point exercise was MWD over the weekend. It performed like a champ! It hit the top Pivot Point of $106, failed, and closed at $100 3/8. With the down draft, the lower Pivot Point of $97.50 may shortly come into play. The way a lower Pivot Point works is that we set our buy target slightly above the Pivot Point. In the case of MWD, let's say $97.75. We wait for the price to fall through the Buy Target and then enter the limit order at the Buy Target Price. The benefits are: 1) Our downside is extremely limited for if the price falls back below the Pivot Point, we can get out with a modest loss, and 2) The investment return to the upside Pivot Point (in this case $106) is usually very satisfactory. So, it's late and I decided I would do an easier one. MRK - Close 4/26 $74.00; Pivot Points $72 and $80 Weekly Chart Analysis: MA, $71; HS, $67.50; HR, $80 & $87; TL, $71 x $90 It is hard to find a prettier four year trading channel. It is almost amazing how the lower TL almost perfectly follows the MA. Only rarely does the price go above or below the trading channel, which has a generous 28% range. Clearly, any time it gets close to the lower TL -- just buy it. Just put cotton in your ears, ignore the ANALysts, and buy it. The weekly charts are totally controlling for this stock. The weekly BASIC provided a sell signal 4/1; however, the way to play this one is by simply watching the trend lines. Daily Cart Analysis: My first thought of the daily was just don't bother with it. However, it may be helpful to time the entry and exit as the stock gets close to the lower and upper trend lines on the weekly chart. The daily BASIC gave a sell signal 4/14, but the smart trader would have been out in the upper $80's. Short-Term Analysis: The stock is fighting hard to hold $73, the sto is primed, and it may be very playable in the next few days as it tests the lower trend line. Conclusion: As with many of the Big Boyz last week, Mr. Market periodically takes the stock out and shoots it. By now, we all know the routine; the end of the world is coming, no one is going to every again buy a PC, or MRK is not going to produce drugs in the future. Fear and Greed! Buy when others are fearful and sell when others are greedy. MRK is nice enough to let you know when these happenings occur. And by the Way, BWDIK. TB