Market Gems:Stocks w/Strong Earnings and High Tech. Rank Message Board

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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: LastShadow who wrote (10570)	6/24/1998 11:53:00 AM
From: Jenna	Read Replies (2) of 120523

GAPS, GAPS.. continuation or breakaway? ONSL, RMBS, CMCSK RMBS is a major continuation gap from yesterday on strong volume, higher highs, and is under accumulation. it got a "green light" this morning as the Market Faciliation Index was higher and the volume was higher. Once the stock has gapped open to the upside in the morning was trading for half hour the entry point at which to buy will be 1/4 or 1/2 above the high of the 1st 1/2 hour. RMBS can only be bought after it has trade for a complete 1/2 hour, and then only if it manages to trade 1/4 point above the highest price of the 1st 1/2 hour, which it is as it keeps making higher highs. Then you should put in a stop loss a few ticks below the low of the day or when your order went through.It is imperative also to watch the time @ sales carefully looking at the bid/ask and the volume of the trades and you get an great idea if the stock is in high demand, which it was in this case. This break of the first half hour can keep occuring throughout the day as RMBS makes high highs even at 12:00 or 2:00. Is there anything else significant happening here? 2) Yes.. It's the 50 day and 21 day moving average. 48% above value of 21 day and 39% above value of 50 day moving average. that is very bullish. 3) Has an really signficiant news come out. For both ONSL and RMBS the answer is yes. for CMCSK it was a quadruple point and figure breakout yesterday. ONSL, CMCSK are breakaways .. when they occurs on expanded volume (preferrably at least 100% higher than 30 day moving average) like it did here I like to get in because obviously the stock is under mass accumulation. It is imperative that you must draw trendlines through at least 5 or 6 tops and 5 or six bottoms. Between the trendlines you have a trading channel. I would get in as long as the upper channel trendline is not violated the prices are along the upper trading channel and actually penetrating it. The upper channel is actually the resistance and when ONSL keeps making higher highs you are penetrating resistance at new and higher levels. When it stops making higher highs and starts to go below the top line of channel and begins to hug and ride the bottom line which is actually support. . Some traders like to go in when the bottom line is reached (the support line) hoping ONSL would bounce off the support and continue up. Others are more aggressive and like to buy when the top (resistance line) ispenetrated and ONSL is making higher highs. Problems occur when the support could be violated and then you have a exhastion of the trend and that is not good. What I would do if I missed today's action is get the time and sales of both stocks for about 1 hour from 10:00 to 11:00 and draw trendlines through their tops and bottoms and see that the angle keeps getting higher and higher as resistance is being broken at new points or at least RMBS and ONSL are trading along the top line of the trend. Then you can be ready for these stocks the next time. Look at areas where they bounced off support on lower trendline only to hit the upper trendline and either penetrate it or ride it for a few hours.

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