BTGC Still Petering Out! According to WINs, BTGC is [W]ithdrawing!
One of the benefits of applying and thinking in the WINs approach is
that you stop trying to "wish a stock" price increases in order
to "make a profit." After all, if you are selling CCs over and over
again, you are basically generating an income stream that can
compound annually to some impressive rates of return. 35% to 45% un-
margined annually is not unrealistic. Using careful 50% margin and/or
LEAPs as a surrogate in place of the stock would bring the returns to
45% to 75% annual realistically. Of course, if there is a price
increase in our stock, it is possible to make a higher rate of return
in a shorter period of time! If you are holding long NASDAQ stocks
that put you asleep, you should be CCing as a way to generate income.
If you are long and your stock(s) are going down, then you need to CC
in order to hedge against further lost of value.
Using BTGC as our example, we see a stock that gapped upwards and
more than tagged the upper BB. At the same time, the RSI moved above
the 50 marker to a 70+ reading which is historically high for BTGC. I
found all of this information by reading the chart using the BB and
RSI indicators. Standard practice for us! As a sidenote, I'm now using
the BB and RSI timing with my "safe money" in my 401K which happens
to be invested with Janus Capital Appreciation. They had a whoppin
+60% one year return and a +25% year to date. So, I'm not complaining
about my blessings. What a country! Only in America folks.
I just picked up a booklet on Bollinger Bands from John Bollinger
company. I only learned a little bit more than I already knew about
his powerful indicator named after him. Lately, I have been using the
ticks and money flow information to better illustrate what the charts
using the BB and RSI formulas crunch. It is small focus of the bigger
picture offered by the charts. Just the same, you get a better feel
for the charts when you see where the real money is heading.
BIO TECHNOLOGY GENERAL CORP
(NASDAQ:BTGC Last Sale: 7 5/64 -7/64)
BTGC Trading Summary Wednesday, 07-APR-99
Again, we see small +98 "chumming" up ticks worth $563.1 million
followed by -109 toilet flushes (which included -2 big down ticks)
worth -756.5 million. There was more shorting and/or profit taking
today. As BTGC continues to fade, those shorts will become more
valuable. It is easier for the MMs to make money shorting BTGC. They
making it coming and going up or down. That is what investors must
understand and learn to exploit.
Ticks Money Flow($M) Avg. Price
Small Blocks +98 -107 +563.3 -568.1 7.1866
Large Blocks +0 -2 +0.0 -188.4 7.1918
Total: +98 -109 +563.3 -756.5 7.1870
06-APR-99 Ticks Money Flow($M) Avg. Price
Small Blocks +153 -158 +754.2 -849.8 7.2076
Large Blocks +2 -2 +146.3 -160.9 7.1856
Total: +155 -160 +900.4 -1,010.7 7.2031
The volume rule of thumb is: "without trading volume, most stocks will
most likely fall in price by their own weight." It is also important
to know in which volume direction the money flows. -$1,010 million
yesterday and another -$756 million today. The net outflows were much
greater than the inflows. |
