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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: cirrus who wrote (51751)	7/21/1999 12:34:00 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

Stocks that reach new 52 week highs are 'technically overbought' but are definitely in a pivotal position because they have passed all resistance and are now in unchartered new territory. I love these stocks. like ADRX CHRX, BMET, etc.

To: cirrus who wrote (51751)	7/21/1999 12:38:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

If I took a concensus of every watch list candidate that I dropped from the watch list because they were simply overbought stochastics you would not believe the high bouncers I dropped. Take SNDK for an example and CHKP.. take others like DISH for a long time. When a stock is in the midst of a strong uptrend it usually continues to break new ground, it does not necessarily mean that the stock is about to tank. SNDK has been on a roll for over 7 trading sessions and CHKP is on a very strong uptrend as well. Both these stocks and CDNW were both newsletter and watch list stocks indicating the strength found in them. CREE was up over 4 points the day it was on the watch list and SONE was approaching strong resistance and had it penetrated it would have reached new highs. I sold POS, CLX, LXK when I thought they were toppy and they both made 40 points more. An overbought stock can stay overbought for a long time without going down and an oversold stock can stay oversold and drop even more like a NEON etc. When I say overbought it is to help you in your decision process to know AT LEAST ONE INDICATOR not all is pointing at overbought. MSPG and others tanked solely on market sentiment. Overbought stocks make newer highs. If I included only oversold stocks you'd have a bunch of YUMS and ADLACS which have been and remained oversold and continue to tank. Experience has taught me that on good or middling market days stocks in strong uptrends have the 'coniker' strong buy, preferrably the stochastics will be under 72 but in a strong uptrend before an earnings report as long as you are not holding a 'overbought' stock through earnings you have a goood chance to continue the uptrend. Don't worry about wars, I will nip any wars in the bud. You asked a viable questions. CREE has had a fantastic run, but after a day like yesterday when big blues IBM and GM fell, how can one know just the day an overbought hi-flyer in a strong uptrend will decide enough is enough. That is why there are 10 watch list choices and I include the stochastic in each and every choice. Pick the ones with lower stochastics. CDNW was a fine pick and so was USWB coming out of corrections. There is no holy grail. Who decided that EXDS would be up 30 points in just a few days after it was on my last watch list..or CUST up over 25 in 3 weeks? Can you decide when enough is enough.. Or even SDLI which was on roll past its technically overbought condition. Its a fine line between a technically overbought stock and one that is about to break final and major resistance to reach newer and higher highs. Choosing just losers with low stochasics will get you into YUM and TAGS.. instead of into SNDK XIRC etc. Remember while stochastics can indicate a stock is overbought the relative strength can be in a very favorable condition. So you are generalizing too much when you say simply overbought. It was I who gave out the first warning last newsletter that the stocks were looking overbought, most of them (look at last weeks newsletter) went even higher. But after the last newsletter I saw the writing on the wall. I had a long list of potential 'overbought stocks' and this time they tanked yesterday. Ironically, I pride myself in my market timing and mostly get out before a 'crash' or get in on the beginning of a new uptrend. Sure I get caught in a stock that begins to correct, but I get out quick, just as I did today with the AMZN, QLGC puts.. I don't hang around long enough to have much damage. New uptrends are the best, to be sure, and I call new uptrends in all the newsletters and some of the watch lists and even on SI stocks I mention. If you chose the wrong ones, I'm sorry but a lot opeople had bad days and the next time it will be better still.