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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herm who wrote (8170)8/10/1998 8:50:00 AM
From: Riskmgmt  Read Replies (1) of 14162
 
Herm:
What I see on studying the charts is that both stocks have hung to that upper BB in the past and taken it higher. Although more commonly they both bounce between the upper and lower. Looking for what makes the difference it seems to be RS. When they have headed back down the RS is also falling. When they "hug" the upper BB and go higher RS is high and goes higher or remains above the 50 mark. So in a sense, as you noted in another post I read, RS is an early warning system. I think cc's on them at the moment is a fair bet but needs close watching if RS increases.

Thanks again.

Ray
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