Go to Jeff Salisbury LWGate Home Page.From: "Chuck Dreier" <chucknsc@mindspring.com>
Subject: Re: [CANSLIM] How much support is the 50 DMA? (JOSB)
Date: Mon, 5 May 2003 17:49:47 -0400
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This is a multi-part message in MIME format. - ------=_NextPart_000_0011_01C3132E.B8435670 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Several times I've been bitten by strictly following the 7-8% rule after = the stock came bounding back. Other times I've let it ride and watched = the stock continue a downward spiral. My advice, for what little it's = worth, is to follow those strict rules - called discipline. Since = you're already minus 12, maybe see how it starts out tomorrow and then = either pull the trigger or hope for a rebound.??? ----- Original Message -----=20 From: Chris Jones=20 To: CANSLIM=20 Sent: Monday, May 05, 2003 5:44 PM Subject: [CANSLIM] How much support is the 50 DMA? (JOSB) 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 - ------=_NextPart_000_0011_01C3132E.B8435670 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2800.1170" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial size=3D2>Several times I've been bitten by = strictly=20 following the 7-8% rule after the stock came bounding back. Other = times=20 I've let it ride and watched the stock continue a downward spiral. = My=20 advice, for what little it's worth, is to follow those strict rules - = called=20 discipline. Since you're already minus 12, maybe see how it starts = out=20 tomorrow and then either pull the trigger or hope for a = rebound.???</FONT></DIV> <BLOCKQUOTE dir=3Dltr=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3DSwingKid104@attbi.com = href=3D"mailto:SwingKid104@attbi.com">Chris=20 Jones</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 href=3D"mailto:canslim@lists.xmission.com">CANSLIM</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, May 05, 2003 5:44 = PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] How much = support is=20 the 50 DMA? (JOSB)</DIV> <DIV><BR></DIV> <DIV><FONT face=3DArial size=3D2>I have a dilemma - I bought JOSB a = few weeks back=20 and put a mental stop in at $27 (8%). When I checked today = after=20 the market closed, I saw it had dropped $1.88, and is now at = $25.51. I'm=20 a little mad that I only placed a mental stop, which could have = avoided this,=20 however I can't change that now. Normally I would sell right at = the=20 market since my loss has now dropped to 12%, but the stock now sits = about $.25=20 above it's 50 DMA. Should I hang on and hope institutions will = step=20 in? IBD says "many institutions view the 50-day line as a level = at which=20 they can add to their positions at a reasonable price. That's why many = strong=20 stocks find "support" at this line." However, it seems that the = 50 DMA=20 hasn't been too much of a support/resistance for JOSB in the = past. I=20 hate to wait and hope, since that's exactly what O'Neil said bad=20 investors do, but the 50 DMA adds an interesting twist. Should I = sell at=20 the market, or wait to see if it bounces back? Opinions are=20 appreciated!</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>Thanks so much!</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial = size=3D2>Chris</FONT></DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0011_01C3132E.B8435670-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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