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

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To: gbr who wrote (19909)12/15/1998 12:16:00 AM
From: Jenna  Read Replies (2) of 120523
 
The market.. what to do if you want to continue trading...

without a 'healthy' correction it gets very difficult to pick stocks. I usually keep stocks for up to one quarter (3 months) but mostly not longer than 1-3 weeks. It is 4 times a year that you should expect the pullback before earnings season. Companies like MAT will report expected shortfalls and any 'outside' stimulus whether it be the Brazilian economy, or President Clinton's impeachment woes, there will always be something or someone to 'blame' for the current stock retreat.. It is a typical retreat and will afford us more opportunities for gains in the next few weeks

What I do when the market is down over 100 is either buy puts, on the dow or on some internet sector hi flyers. I listen from about 5:30 am to the Bloomberg financial TV and get any news on foreign companies that might influence the sectors here. This is the time you dust off your consumer non-durables and check out your Nabiscos, Keebler, Sara Lee, Maytag, Best Foods, and of course there will always be a sector or stock that does well.. I get the dow real time news on upgrades and downgrades and usually there will be some opportunities there as well.

Earnings plays will make some stocks buck the trend and afford yet more opportunities for profitable trades. We needed this bearishness, because when everyone is bullish about the stock market that is the worst thing because too much bullishness is actually bearish.. (go figure, but it's true)...
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