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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: Doug Robinson who wrote (68194)	10/27/1999 10:33:00 AM
From: Rick Buskey	Read Replies (2) \| Respond to of 120523

Second leg up---up 28.5 now----going higher

To: Doug Robinson who wrote (68194)	10/27/1999 11:02:00 AM
From: lee kramer	Read Replies (1) \| Respond to of 120523

Doug: Remember Jenna and John's EP strategy. You try to catch the anticipatory upswing. You did, magnificently. Many E/P's, roughly 65% make their highs on the opening the day after they report earnings. So you sold early and profited handsomely. Did you think you'd sell at the top? If I asked you if you'd take 118 or whatever it was you took today, when you entered the trade, I think you'd say "In a heartbeat." (Lee)

To: Doug Robinson who wrote (68194)	10/27/1999 11:08:00 AM
From: Jenna	Respond to of 120523

FFIV.. GSPN, PXCM, CMRC, WEBT, CLRN..etc all have done fabulously and my latest 'gaps theory' which I'm putting together now, I'm questioning the automatic strategy of shorting (or even expecting to short) gap up plays. You have to learn the companies and play them according their unique qualities and not preconceived notions of shorting. Of course by putting in a buy stop after watching the movement of 3 bars (5, 10 minute charts and 15 for newbies)are higher than the previous one I'd just go long and put in a stock below the price on the second bar. By putting an immediate stop and the low of the previous bar you are protecting yourself from a sudden change of direction. Most of our 'earnings plays' are breakaway or runaway gaps.. To be safe and if the stock gaps down after a good report, and the general trend is up I'd wait for signs that a retracement to perhaps the previous day's close or high, or bounce off support and put in a buy stop a tick or two above that support, that way you get stopped in long simply when the rally climbs further above support. No guesswork here. .. That's why the fundamentals, the weekly trend, the daily chart is very important in determining how the gap will go (i.e. get filled or just break away further and further like FFIV). When you get 'anticipation' before, you have to be more cautious be here again it depends how overextended the stock and how 'momentous' the report. RNWK and ARBA sold off quickly but it was easy to see the direction and 'dump the stock' after a couple of lost points of profit.. The next day ARBA rebounded once again.. I didn't put in a buy stop but as I looked at the first trade, I saw an easy way I could have been stopped in long with just a little more thought.