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Don Green wrote (Friday 10/17/97, around 1500EST):
>I like to play short covering and now is the time..
>So I bought 1000 shares of Compaq at the market price
>68.75 with 1 hour to go... This is dangerous, but
>since I had $2k of profit to play with will see..I
>won't be in long... Market seems to be turning up..>
and then...
> Well, is has been a wild day I sold Compaq CPQ at 70 for a 1.25
> gain...based on short covering move.
> with 25 mins before the close.
>
> I will try to explain my madness later.
> Regards
> Don Green
Hi Don,
You've been making some interesting trades I have a few questions
about. Your sense of the market seems astute, and I for one feel like
I'm getting some badly needed non-tech education by listening to your
dialog.
Seems like a while back, you indicated that your source of data and
market info is CNBC. My questions have to do with how you were able to
peg the numbers on CPQ so well on Friday... to wit, your entry price was
the exact low of the day. How did you enter? Market order? Limit at
that price? And how did you decide to exit at the price you did (within
3/16 of the high of the run)? Since the CNBC stock quotes are delayed,
I'm a little incredulous at your using that info to peg the CPQ
pricing. You indicate that you use breadth and sentiment numbers, which
are in fact realtime on the tape... were these enough to find the "turn"
in CPQ that worked so well for you?
Finally, others have also asked about your use (or not) of options.
Certainly, those would offer a different and less equity-stressful way
to effect the trades you've discussed. Why would or wouldn't you choose
to use options for trades like these?
Congrats and keep up the good work!
Dick Crotinger
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