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List,
Well, we appear to be early again, but we're buying even more tomorrow (but
not on the open).
We're trying to buy those Value Line recommendations that appear to have a
breakout type chart pattern (at least to us) as opposed to buying equities
that don't seem to have a strong chart pattern. I used my DataLInk Data on
Demand for this and it appeared to work without a problem.
The stocks I'm looking to buy tomorrow are:
NTAP
PMCS
LLTC
GLW
EMC
NT
SFA
ADBE?
I think there was another one on the list but I'll have to get it from my
brother in the AM. We don't think we'll be adding anything on the open.
The guru thinks the market may go down to noon (EDT) and then turnaround, so
we'll probably go with his instinct. If I'm driving the car pool, then I
won't get back until 12:30 EDT, so I'll be playing it by ear.
I'm also looking at adding some more options, but my brother and I are
seriously looking at trading options using this new system my dad developed
(he calls it sig and 700 and don't ask me where he comes up with some of his
names). We've found that when both signals are in agreement, and come on
the same day, we can buy or sell options quite successfully. Here are the
results from our paper trading and executing at the open (using S&P futures
and not option data for testing purposes):
SIG/700 OLD
1997 33/35 94.2% +780 pts 92% +731 pts
1998 26/32 81% +893 pts 22/26 84% +762 pts
1999 22/24 91% +808 20/24 83% +638
2000 16/21 76% +717 pts
Remember, these are all paper trades and the system does have some
substantial draw downs, which is why we would prefer not to trade real
futures with unlimited downside potential. With options, we have definitely
limited our exposure. We'll be doing a lot more work on this before we
start to trade real money. In fact, with this system, we should still have
out Puts that we closed out too early Friday morning. Because of this, I
limited myself to only 10 OEX Calls going in the direction of our regular
trade.
We may end up trading options strictly on the basis of this SIG/700 but
nothing has been finalized. If I still had my Puts and those Calls I sold,
I'd probably keep them. Since I don't I'll wait for the next signal to take
a position.
Guy
Paranoia...you only have to be right once to make it all worthwhile!
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