CIEN.. +16% with a 14 point intraday range gave us a second day of huge gains. ..."Please do not forget CIEN which is about to report" was on top of today's watch list. It was on the earnings calendar from Dec 2 and triggered on that day. Whether you held through or just bought it twice or three times during this interval you would have done well. CMOS was another volatile one, but the point is you had days before earnings to cash in and a 'bonus' day today to capture a few more points. These stocks will come back for more and more for the next 3 months after some small corrections. These are also the ones that will make the best holds (after correcting). They have already proven themselves, they don't need to pray for 'analyst coverage' and recognition.
They have made it already and those are the stocks that should be a 'core' portfolio even if its just for 1 month or less... The "smash and grab" net IPO's are fine for just that.. getting in and out on either intraday or 3 day reversal patterns. Get what you can grab and sell.
Date Open High Low Close Volume
10-Dec 63 3/4 71 1/2
9-Dec-99 61.50 69.0625 60.25 61.5625 11,000,400
8-Dec-99 62.0625 62.0625 56.25 59.875 5,764,400
7-Dec-99 51.0625 64.50 51 60.0625 20,079,500
6-Dec-99 48.5625 49.0625 46.4375 48.5625 1,856,500
3-Dec-99 46.75 48.875 45.875 47.5625 4,508,500
2-Dec-99 44.375 45.3125 44 45.25 1,412,400
Ciena Posts Fourth Quarter Profit
By Mark Weinraub
NEW YORK (Reuters) - Telecommunications equipment maker Ciena Corp. (NasdaqNM:CIEN - news) on Friday posted a higher-than-expected fourth-quarter profit as its customer base increased, and said its revenues could grow more than 50 percent in 2000.
The company, whose stock has risen sharply this week on favorable earnings expectations and sales of new equipment, said it had net income of $4.5 million, or 3 cents per diluted share, in its fourth quarter, ended Oct. 31. This compares with a net loss of $7.1 million, or 6 cents a share, in the same period a year ago.
First Call/Thomson Financial, which tracks analysts' estimates, listed its consensus forecast for Linthicum, Md.,-based Ciena as a profit of 2 cents per share.
Ciena's shares ended up 10-5/16 at 71-7/8 Friday on the Nasdaq stock market.
Ciena, which makes equipment that increases the capacity of fiber optic networks, said it broadened its customer base during the fourth quarter, drawing revenue from 23 optical networking customers, up from 14 in the year-ago period.
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What traders have to learn is that there is no one solid and proven trading system for winners and the system you apply for today's winner might bomb out on tomorrow's trade. Technical indicators are fancy meaningless mathemathical wonders that by themselves will give you absolutely nothing. But together with chart patterns (breakouts of triangles, head and shoulders tops and bottoms, double tops and bottoms, channel breakouts (the best strategies for tight channel can trading stocks like BOBJ, JDSU, OCLI, EMLX etc), and range contraction (which can signify the triangle has reached the apex and is about to break).. you can map a strategy for swing trading that is better than buying and holding these 1-2 day wonders hoping for monumental gains.
This week's newsletter will be based on the some trades of this week (WEBT, CIEN, PLUG, BITS, COO, CHINA, SCII, ORCC, GAIA, and the 3 losing positions that I got stopped out of: SIFY, BOBJ, CMGI and how stop limits and trailing stops saved from more than just a 3-4% loss. Ironically BOBJ worked out the next day as a short, but I went flat and did get on the day BOBJ was up 24 points. It will show the swing trade strategy of holding a trade like those above until the trend changes to negative (GAIA today and PLUG yesterday but reentered today), yet at the same time fleeing the super high flyers that are no more than one day wonders (i.e. WEBT, TIBX, etc)
Mistakes like the Dec 6 breakout of BRNC on daily chart and selling the day before its up 38%.. Charts don't lie
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