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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Bob who wrote (6048)	4/28/1999 12:40:00 PM
From: Rande Is	Read Replies (2) \| Respond to of 57584

Bob, stocks like RAWA, SGDE, CDNW, NBTY, PLC, BAMM, IOM, SATH, ROSI and many many more are mired in short positions. . . they sit down at ridiculous valuations compared to competition until some news breaks them out for a while, then they return back from where they came. Only way to truly break these is news that is so fantastic that it blows the shorts out of the stock entirely. IOM will have to be bought by IBM, before it breaks out of single digits, IMO. SGDE, CDNW , NBTY, BAMM and SATH will have to see another E-commerce mania coupled with some great news before they see a new trading range. PLC , ROSI and RAWA will likewise need some fabulous news to break trading range. H O W E V E R . . . the short-sellers periodically must cover their positions. . . brokerages need to close positions at end of month or quarter to keep the books clean. . .this is often why these stocks suddenly jump up for no apparent reason. I think this explains this weeks moves in many of those issues and in others as well. Now the smart trader, thru studying the charts, will look for any patterns that can be anticipated. . . buy low before the short-covering rally. . .and sell into the market strength. . . . this is a strategy all its own, that has almost no downside, since the stocks are sitting on their 52 week bottoms when you buy. I call these "Timing" position trades.. . . and they can make for some lucrative gains, if played right. I think RAWA falls squarely into this catagory. . .and I think it hit 9 today for the benefit of the short traders and market makers thinking that nobody was looking. . . . Anyone losing on this stock should complain to SEC. An open up 3 or 4 hundred percent for no apparent reason, then close back near prior day's close is just the sort of thing the SEC is looking for. . .as it investigates the many colors of shady dealings within the Nasdaq, Amex and NYSE and among the many big stinky Wall Street brokerage houses. . . Rande Is