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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: JavaAdict who wrote (47094)	6/29/1999 1:33:00 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

What plays are called on the thread and when.. This might be good for the thread so I'll answer. When I do my watch list "volatility" is one of the key indicators (not good if you're investing and certainly not used for stock #4 for today) but I also have about 2 exceptions on each watch list (steady, stocks like COST, BKB or BGEN). A second key indicator would be "improving technical strength".. especially long term uptrends with a very short term downtrend (i.e. stocks like KLAC, HLIT, BRCM) or stocks that were one very high flyers with a 97 percent performance rank (i.e. CMGI, DISH, AOL) that are now recovering and rising above down trendlines. Also the stocks have to have an intraday range of at least 1 point (i.e. no little ones that move 1/4 point a day)... within that group you are looking for moving average crossovers, bollinger band breakouts, breaking through support/resistance lines, chart patterns (Point & Figure breakouts), etc. We call the plays according to mechanically triggered buy signals throughout the day. We can't determine which stock will move BEFORE it actually does. We can't say that WITC will be our highlight stock tomorrow because it might not. MAIL was definitely not a highlight yesterday, but it was today.. so I had my 'alert' changed to reflect yesterday's down day and entered when MAIL triggered a buy signal today. A lot of the triggers are apparent as the stock moves very 'neatly' into buy territory (i.e. YHOO yesterday), some are harder to call. If you notice the watch list today (I'll put in on the thread later but any archived watch list would do) has 2 charts on it. I will probably put in 1-3 charts in every watch list indicating it COULD be the highlight. Yesterday in lieu of that I put in "BVSN" and stated "preferred trade".. It means the "probability" of it being a successful trade is a little more than the others, but no guarantees of course. The July calendar is full of plays now and they are so strong that a good many might be overbought 1-2 days before earnings so you have a chance to 'follow and track and set alerts' right now. We won't call trades now that are for mid-July unless they are 'screaming buys', but we would tend to call the ones that are for this last week (june 28 thru July 2) which are on the newsletter(i.e. example was FDX yesterday and NDB today) and also from the first two weeks of July, especially the group reporting on July 8, which is a 'good earnings day'. So I would say we call the plays based on "MOMENTUM" and not anything else. I think this is becasue we are not looking to invest so while I can safely say I like Medtronic as an investment, it is moving slowly today and not yet a momentum trade. But CMNT, is a clear Momentum trade and so was CUST.. So momentum reigns supreme. For the newsletter it is really the same, momentum triggers the buy signals but there is a difference.. The stocks on the Newsletter list are FUNDAMENTALLY SOUND or have increasing revenues and improvement from quarter to quarter (i.e. NSM, VRIO, GNET, ADBE).. whereas the watch list picks are not necessarily fundamentally sound. We look for "Anticipatory Uswing' which is the MOMENTUM (again that word) that tends to move a stock before earnings come out, and of course, if the stock has been chosen based on the criteria of fundamental strength, it has a better chance of moving up than just a random stock from the hundreds and even thousands that report that particular day. With both the Newsletter and Watch List, you have a good 'menu' of choices for the day or the swing trade (watch list) or the longer term trade (newsletter pick that beats the street i.e. BBOX, BEAM, FRNT, FWRD etc) I think the threaders would agree with me that even plays called by SF, OJ, Burjis, Adelle, Redhook or whomever are also based on Momentum or technical buy triggers, point & figure reversals & breakouts, channel breakouts and of course NEWS.. Without analyst upgrades or a datafeed of news you are in a vacuum.

To: JavaAdict who wrote (47094)	6/29/1999 1:49:00 PM
From: lee kramer	Read Replies (1) \| Respond to of 120523

JavaAddict: I'm fairly new to Market Gems, and I may have it all wrong, but I'll give it a shot; the Watch List comes out every trading day and lists the 10 stocks that Jenna determines, in her inimitable and extraordinary way, to be technically "ready" for a short term (2-5 day, perhaps more) move. It's kinda like me going to a Very Classy bordello and being introduced to 10 lovely ladies. You pick and choose; look at the chart, look at the price, look at the company, the industry...do a bit of homework, find one or two that you like. (Jenna, you can jump right in if I'm messing up here). I must report in all honesty that I am very impressed with Market Gems...and it took me a while to get a handle on things. And I'm not all the way there yet. (Lee)