For Boyd Stone, our charting expert

Hi,

I'm in disappearing mode, as I told the group at FIB in message http://friendsinbusiness.com/board1/index.cgi?read=7105 but because I'm highly flattered that you asked my opinion, and because you are one of about 20 people on the internet that I respect (what I just wrote is the total truth, and in fact the number could be lower than 20), let me give whatever input I can.

Since I trade by looking for orderly price movement and trying to "go with the flow" as early as possible, the latest signal I see from the Nortel Systems is a ledge breakout Sell.

From 9/27/2000 to 10/17/2000 the Nortel barchart formed what Joe Ross called a "ledge," a tight sideways trading range.

The best way to trade a ledge is as follows: If the price pops out of the ledge on the downside, and then retreats back into the ledge and pops out on the upside, it's a buy signal. If, as is the case with Nortel, the price pops out of the ledge on the upside (October 20), then retreats back into the ledge and pops out on the downside (October 24), it's a sell signal.

If Nortel was a commodity item, in other words, the latest thing I would have been trying to do would have been to try to sell at a couple of ticks below the ledge, if I'd been trading that particular commodity item.

For me to be interested in buying Nortel, I'd have to see an orderly rise in prices, and then I'd try to get on board as early as possible, put in a stoploss, and try to ride a trend for as long as I could, moving up my stoploss as new support areas were put in.

As I've mentioned a zillion times, I've only successfully lost money as a trader (about $20,000) whereas you and your husband make money as traders, so take what I've written here with at least a grain of salt.

Anyway, that's how I look at charts: I try to buy into upward price action and sell into downward price action.

Hope this was somehow useful!

best,

-Boyd

> Hello Boyd, I got this alert a couple days
> ago from a net friend who buys options"

> "Alert - Nortel NYSE has broken out of
> it's channel !!!!!!!!!!
> Ahhhhhhhhhh !!!!!!!!
> I bought more today at 43."

> I bought some at a lot more some months
> ago!!

> From your charting experience, what do you
> think? Just curious to know if you'd jump in
> now or wait.

> Thanks.

> Eliz.