[CANSLIM] How much support is the 50 DMA? (JOSB)

From: "Chris Jones" <SwingKid104@attbi.com>
Subject: [CANSLIM] How much support is the 50 DMA? (JOSB)
Date: Mon, 5 May 2003 14:44:40 -0700

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I have a dilemma - I bought JOSB a few weeks back and put a mental stop =
in at $27 (8%).  When I checked today after the market closed, I saw it =
had dropped $1.88, and is now at $25.51.  I'm a little mad that I only =
placed a mental stop, which could have avoided this, however I can't =
change that now.  Normally I would sell right at the market since my =
loss has now dropped to 12%, but the stock now sits about $.25 above =
it's 50 DMA.  Should I hang on and hope institutions will step in?  IBD =
says "many institutions view the 50-day line as a level at which they =
can add to their positions at a reasonable price. That's why many strong =
stocks find "support" at this line."  However, it seems that the 50 DMA =
hasn't been too much of a support/resistance for JOSB in the past.  I =
hate to wait and hope, since that's exactly what O'Neil said bad =
investors do, but the 50 DMA adds an interesting twist.  Should I sell =
at the market, or wait to see if it bounces back?  Opinions are =
appreciated!

Thanks so much!

Chris
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<DIV><FONT face=3DArial size=3D2>I have a dilemma - I bought JOSB a few =
weeks back=20
and put&nbsp;a mental stop in at $27 (8%).&nbsp; When I checked today =
after the=20
market closed, I saw it had dropped $1.88, and is now at $25.51.&nbsp; =
I'm a=20
little mad that I only placed a mental stop, which could have avoided =
this,=20
however I can't change that now.&nbsp; Normally I would sell right at =
the market=20
since my loss has now dropped to 12%, but the stock now sits about $.25 =
above=20
it's 50 DMA.&nbsp; Should I hang on and hope institutions will step =
in?&nbsp;=20
IBD says "many institutions view the 50-day line as a level at which =
they can=20
add to their positions at a reasonable price. That's why many strong =
stocks find=20
"support" at this line."&nbsp; However, it seems that the 50 DMA hasn't =
been too=20
much of a support/resistance for JOSB in the past.&nbsp; I hate to wait =
and=20
hope, since that's exactly what&nbsp;O'Neil said bad investors do, but =
the 50=20
DMA adds an interesting twist.&nbsp; Should I sell at the market, or =
wait to see=20
if it bounces back?&nbsp; Opinions are appreciated!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Thanks so much!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Chris</FONT></DIV></BODY></HTML>

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