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Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel
RTK 0.200+5.3%Oct 13 5:00 PM EST

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To: Terry Jackson who wrote (1481)2/27/1998 12:21:00 PM
From: Lawrence Burg  Read Replies (2) of 14347
 
I'm responding to you, tho' I do see a number of answers to your ? in between. Hopefully I'll cover those also. I think you can apply TA to pennies. It depends on the severity of the news driving it's future. The TX potential is in the price; it's gotta be, everyone knows about it. The price is currently balanced on the market according to it's probability of happening. If you see TX fall through, the price will drop accordingly. If the deal goes through it'll jump...accordingly. As the probability changes, the market action changes. TA should show you some of this provided the probability doesn't just explode (i.e., they keep a lid on progress completely).

In general as a company's complexity grows, much potential news is either rolled into the price or doesn't affect it when it hits. If it's a simple FA like HNLY everything affects price significantly. If it's IBM...news?...so what (price % wise). So what am I saying...? Oh yeah, I guess ya hafta weigh your TA into your overall RA based on a Co's complexity/FA. Nothing new. It's just one more tool. Bias it accordingly.

I know folks who have been very successful at timing moves better than with FA alone. It does also seem to require some tailoring to each security. It is an art, but it can be very telling. I'm very new. Can't stress that enough. But, I'm aware of results. I'm also learning some tricks which are stunning. I'll keep looking at RNTK for the reasons I mentioned in my post and update here.

Keep the ?s coming. It's great to be learning again.

Lawrence
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