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

From: michael_niemotka@baxter.com
Subject: Re: [CANSLIM] How much support is the 50 DMA? (JOSB)
Date: Mon, 5 May 2003 16:49:39 -0500

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Chris,

For what it is worth, I would set a hard stop a little below the 50 dMA to
make sure you don't take an even bigger loss, then you might want to see if
it bounces back.

JMHO

Mike

Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com


                                                                                                                            
                    "Chris Jones"                                                                                           
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                    05/05/2003 04:44 PM                                                                                     
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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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