Joe, Eric and Herm,
This is my observation as someone who has benefited from this forum.
I believe there are at least 2 kinds of stocks with different behaviors.
The first group, are the so-called trending stocks, e.g. CSCO, DELL, MSFT, INTC, HD, COST, indeed the majority of the growth stocks. I use the MACD histogram to determine the trend. When the MACD histogram is positive, the stock is trending up (equivalent to RSI heading up), and vice versa. The graphs displayed definitive trends, up or down for a long period of time. My apologies to Herm, but for these stocks, I have learned never to sell CC. For these I use long term indicators (MACD, RSI) to locate trends, and use short term indicators (Stochastics) to locate entry points for either long or short positions.
The second group, are the volatile stocks. Small Cap Tech, BioMed and cyclicals usually fall into this group. The stock moves in short trends, and sometimes the cycles are tied to earning reports. Applying WINs to these stock gives me a steady source of revenues and most of all, better sleeps :-).
Just my Very Humble Opinion,
//V |
