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No. of Recommendations: 1
From: Zeev Hed on SI,

Larry, there is one point that often triggers a buy (when other parameters are in "gear" which cannot be derived from the charts, I call it "bunching of the bids" (or the asks). Once other parameters are in gear like the Naz reaching within 10 points of a "perceived turn", or the tic and trin reaching extremes, or even the P/c ratio (rarely) reaching an extreme, I start and watch the Q as a group for bunching on the bid (when I want to buy) on any one of the Q (often QLGC and EMLX gives the marching orders, but in the last two days it has been BRCD). That effect has various appearances, sometimes it is the rapid "eating" of very large asks (when that signal is active I often get very near the local low), sometimes it is a large size bid appearing at least three times in a row at higher prices (that is how I often miss that local bottom by a solid quarter or so). Mind you, a good one out of three times, these signals are false, particularly the "eating of the asks". There are few other parameters, and you should know that I rarely get all the parameters in synch before I move, as a result, I often get my head delivered back on a silver plate (g).
It helps (if you play only the long side) to the have the market direction on your side. For instance, in the last two days, I played EMLX 5 times, three were losses and two gains, luckily, I limited the losses to $.12, $.17 and $.20 (total of $.47) and the two gains were $.54 and $.60, fully compensating for these losses, but it would not have been worth being in at all, unless the model called for a rally from the buy (the model called for us to reach 1960 and possibly breach that, which we did not), yet the outside possibility that a rally will develop into a breakout is what kept me jumping in, because as we saw in the prior week, when we get enthusiasm, stocks like EMLX and QLGC can easily deliver $6 in a week, INVN did just that this week. Nevertheless, it seems that all the Q have established a double top (EMLX could still breach the $48 area here and thus change the pattern, but time is running short), so fo the next month or so, the tough game of playing a down channel on the long side, will be "trying". JNPR on the other hand is already "destined" to go and visit the sub $12 area, IMHO, and I am not playing it in the near future.

Talking about INVN, you may want to study its recent chart for a classic "box theory" play, with consecutive "breakouts" a number of time when the box' top is breached.

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