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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (7578)	6/1/1999 8:51:00 AM
From: JZGalt	Read Replies (1) \| Respond to of 18928

One thing I concluded was that you might not want to pull a Vealie on the way down. My understanding is you pull a "Vealie" only after you have replenished your cash reserve to the level the IW suggests. I don't think Vealies are implemented on the way down. We have discussed using a stop loss instead of a Vealie in certain circumstances to avoid a stock which moves sharply higher, then fades after a traditional Vealie is put into place. This might have helped you with the IDCT result. The other was that you could start out with a bang only to find yourself buying your way to a loss. But the end result can be positive do to inherent volatility. Which is why you need to concentrate on very good stocks in the long run. IMO. My other observation is that the timeframe you are using is too short to draw any real conclusions. 5 months is too short of a time for any company to turn around except from the bottom of an unwarranted selloff. For instance if you look at CHRZ or CATP and start at the beginning of the year, I would wager you will get a significantly different outcome if you run the numbers now vs. 1 year from now. SAVLY and DCTM show profits because you started buying them just before they collapsed on 1st quarter eps fear (allowing you to buy shares at a discount) which has subsequently subsided to some degree (allowing you to sell those "blue light specials"). If you look at NETG however, it rose during the mania of dot com companies in late March, then has fallen significantly as the perception shifted in favor of DCLK gaining market share. In this particular stock, you might be in a phase where those cheaply accumulated shares will be sold at higher prices later, or you run out of cash as the advertising model of NETG is shunned by wall street. Who knows? The point is this timeframe is too short. ---- Dave