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At 12:33 PM 10/28/97 -0500, you wrote:
>
>Roy C. Sampley wrote:
>>
>> The DM minus SF spread I told you about that shows a history of good profits
>> for entry when 123.05% is exceeded happened clearly this morning in z and
in h.
>>
>> Consider Practicing Random Kindness
>> (Read RAK's in Reader's Digest May 1992)
>> Roy C. Sampley
>> rsampley@xxxxxxxxx
>
>
>Roy,
>
>Forgive my ignornce, but how do you figure the spread? Your observation
>sounds interesting. Thanks.
>
>Nathan
The spread lets us buy the DM and sell SF DM-SF is about -13.60 today.
SF/DM gives the % we want to see. We make money when the spread negative
decreases. So, -13 would be 60 points better than -13.60 at $12.50 per
point. Historically we don't see much over 123%. As the 123 becomes less,
the negative spread decreases which on a chart will look like a stock going
to the right and up as it increases in value. Best to buy in multiples of
two. Then when you make about $2000 to $2500 on one, you exit half and take
your profit. Hold the second. It may make $5,000 or more. If not, get out.
Typically 6-12 weeks and maybe once or twice a year.
That "If not, get out." reminds me of the quote from Will Rogers: "Don't
gamble! Take all your savings and buy some good stock and hold it till it
goes up, then sell it. If it don't go up, don't buy it."
Consider Practicing Random Kindness
(Read RAK's in Reader's Digest May 1992)
Roy C. Sampley
rsampley@xxxxxxxxx
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