Ken Deen's
			   THE AGGRESSIVE TRADER
			        BUY ALERT
                                                           1339 Virginia Rd.
Vol. 1, No. 36                                           Montecito, CA 93108
April 10, 1992                                                (805) 565-2039
                                                      CompuServe: 72020,2050


   BUY Digital Equipment July 45 puts (symbol: DECSI)
      * Today I bought DECSI at 3.
 
   Model Portfolio:  No trades


Market Commentary

   The Fed eased credit yesterday, sparking a one-day reversal of the recent
correction in stocks.  How far this rally will go remains to be seen.  I am
skeptical.  Since my list of open positions is still heavily weighted towards
the bullish side, I am comfortable that I will profit nicely if the rally
continues.  However, it is entirely possible that the rally will fizzle and
the correction will resume.  Also, most of my recently opened bullish
positions are underwater.  Therefore, the market continues to be suspect, and
I am continuing to focus on the bearish side for new positions.


Discussion: Digital Equipment (DEC)

   In spite of the strong stock market rally yesterday, DEC tumbled 5 1/4
points on heavy volume to close at 48 1/4.  The selloff was sparked by very
bad earnings news.  The company reported a loss of $294 million, or $2.36 a
share, for the fiscal third quarter.  This was far below even the most
pessimistic of analysts' expectations.  Revenue was down 8%.
   Yesterday's action was significantly bearish from a technical point-of-view
as well.  The stock set a new low, falling below the previous low of 49 1/2
(48 1/2 intra-day) set on Dec. 20 last year, thus breaking support.  This is 
the lowest price for the stock since 1985.
   With both the fundamental and the technical aspects looking bad, and with
the bad news just reported yesterday, I expect the stock's fall to continue.
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