There are so many ways to play this stock reversal thing it makes my head swim. But it seems to me another way to do it is to be really patient and wait until one of these stocks gets really hammered and buy it then. For example, CEPH opened at 39.53 this morning. I'll bet you dollars to donuts that it turns out to be a buy on the open. If for nothing else, just to fill that gap on the open. We'll see.

Larry

Larry,
Would you get out of the second CEPH position when it is profitable or would you wait and get out of the entire doubled position when the first postition is profitable or hits 15 days?
h

Howard,

I don稚 know. I bought some CEPH yesterday. I知 not sure what I知 going to do with it yet. I値l probably tend to think of it as a separate position.

My only point with the CEPH post is one of the ways you have to minimize the number of positions and, maybe increase your odds is to wait for the ones that really get hammered over several days. It stands to reason that with a mean reversion system, the further they are from the mean, the greater the bounce may be. The other side of that coin is the more they get hammered, the more likely something is seriously wrong and the less likely buying interest will emerge.

We値l see. I値l let you know when I sell CEPH.

Larry

Larry,
When I modeled the QQQ BB reversal and bought an equal position the second day if it was down again, the losses went to near zero. There were very rare days when it was below the BB 3 daya in a row.
I've noticed that with these stocks, it's not as rare,
h