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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

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To: rod runyan who wrote (3735)2/24/1999 10:20:00 AM
From: James Strauss  Read Replies (2) of 13094
 
JBOH:

Rod:

The fundamentals are poor but the chart is good...
iqc.com

Ideally you'd want to see positive fundamentals and technicals... But, many times the technicals lead the fundamentals... So, a good chart with poor fundamentals might be indicating insider buying based on news not yet known to the public... As a caveat, sometimes stocks are manipulated to push the price up to show artificially improved technicals to lure in people that rely only on technical analysis...

As a rule of thumb, I try and look for those stocks with good technicals that have either:

1. Good fundamentals...

2. Improving fundamentals...

3. A compelling story that could result in good fundamentals...

Most importantly, I try and imagine what effect the chart or the news will have on the psyche of the average investor...

Jim
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