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Strategies & Market Trends : Stochastics

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To: R. Gordon who wrote (83)2/9/1998 9:10:00 AM
From: Wayners  Read Replies (2) of 927
 
I completely agree and I've noticed it. At times it can be very hard to find stocks to go long or short on and at other times there's way too many. That can be rather frustrating and it takes discipline to sit in cash waiting to find something to play.

If you chart the major indexes you can see why it happens. The major indexes have major influences on individual stocks prices most of the time, but not all of the time. To make sure I stick to only the high volatility companies, I do a stock screen each night on 800 high volume stocks to find those that have averaged a 3% move per day over the last 50 days. That gets some good "white knuckle ride"stocks identified. That list doesn't change too much from day to day.

I agree about the IPOs also. I love finding those that have gone way up beyond all reason and then the moving averages start to slant downward. There's a lot of money to be made shorting those. I try to update my list of 800 about once a month or so and I think it picks up the latest "hot" IPOs.

Also look at companies that are in a long slow downtrend no matter what the overall market is doing. Look for companies that are weak relative to the indexes by utilizing relative strength. There's just so much money out there to be made and my shopping cart is too dang small. Have a great week.
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