I've been reading gary smith's columns, and have been wanting a trading partner. Seems like this could be a place to post picks, and get feedback, from lots of gary smith "wannabees".
I've summarized his methodology based upon reviewing his articles from thestreet.com.
Good luck to all who venture here…
Shorts
Trade below 50 day ma
Volume twice daily avg. volume
Trend or support must be for at least 15 days
Major downside break, ie 1 pt or more
5% profit, 6% loss from order fill
looks like "the sound of a branch cracking"
Long
targets/stops: 5%/6%
volume: 30K shares on avg (minimum), and fairly consistently
close above 52 week high
price above resistance cutoff (longs): 10%
time order held: 30 days
time to close: as soon as limit is hit
all orders are market orders at the open
reference columns from: thestreet.com 7/8/98 (updates 3/30, 5/18, 5/25/98)
you can set up the short trading screen in marketplayer.com. There's a version of the short selection screen called "gary smith"
david silberman
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