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

From: Fanus <fanus13@yahoo.com>
Subject: Re: [CANSLIM] How much support is the 50 DMA? (JOSB)
Date: Mon, 5 May 2003 15:17:18 -0700 (PDT)

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In my opinion, if you decided beforehand to sell at
$27 and the price is below that, you shouldn't be
looking for excuses to stay longer.  

Your plan was to sell when it drop below $27, it
dropped below $27, so sell.  If you are not
disciplined and stick to your plans, you will get
killed.  

If you do not do that you will always find excuses to
stay longer in a position and before you know, you are
down 50% or more, hoping for a 100% rebound to break
even.

- - Fanus

- --- Chris Jones <SwingKid104@attbi.com> wrote:
> 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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