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: Jenna who wrote (16211)	10/6/1998 5:31:00 PM
From: Jenna	Read Replies (1) of 120523

Technical Analysis Tools.. falling short.. you need more a combination of Technical and Fundamental Analysis more now than ever before. If you stick to end of day or weekly TA for buy signals and buy for position or short term trades based on these signals you will be left wondering: 'why did my stock tank?'. TA signals are fine for 5 minute charts and daytrades, but if you use 'triangles' and 'pennants' and breakout of bases to trigger short term/position trades in these volatile markets you will lose money. VRTS and LGTO were great at 'breaking out' of bases but left you in the dirt. It is no wonder that position traders are becoming daytraders. Just check their threads and see them exiting all trades after the close. Those holding on are losing. PUTS were excellent today but only confirmed the undeniable fact the large caps were still in free fall and provided NO LEADERSHIP. When they do rise it is without the volume necessary to call it a true 'breakout' or anything more than a 'dead cat bounce'. They provide no leadership because future earnings are unclear either due to effects from global problems, or other factors inherent to the sector. Even banks which really looked to have bottomed fell to lowest trading ranges. Internets are alway good for speculation and intraday gains but try holding them for two weeks and see what happens! I can't count the e-mail from traders saying "DELL is now a buy".. or "MSFT formed such and such a base".. or "LU has bottomed formed such a such double bottom"... It hasn't happened. What has happened is what I said on Sunday. The large cap tech stocks are falling below support and continuing to fall. That is dangerous. Today was a repeat of Friday where the 'tech' leaders failed to show any strength beyond the 'dead cat bounce' (which was good for overnight trades) in the morning. Dead cat bounces are the only thing I see in the NASDAQ now. This is why I have 'defensive' companies like FOOD, and have added selected retailers, gold to the Daily Watch Lists. It is because these companies have earnings you can 'bank' on. The companies with strong earnings will continue to outperform. MOT's rise today, AA's rise was a 'reward' for good earnings or 'better' earnings in the near future. There will be more rewards bestowed in the next few weeks. Even just the hint of a 'better' future will move the 'severely' beaten down stocks. I will continue to post tech stocks as picks. But only if you are in cash at the end of the day will you be ready to jump on them when they recover.

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