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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: lee kramer who wrote (90144)3/25/2000 7:54:00 AM
From: katy hohmann  Respond to of 120523
 
Lee, great post. Katy



To: lee kramer who wrote (90144)3/25/2000 1:29:00 PM
From: nokomis  Read Replies (1) | Respond to of 120523
 
lee - LOL! ..can't figure out what you love more...the market or life itself!

(you have hair?)



To: lee kramer who wrote (90144)3/26/2000 10:19:00 PM
From: Susan G  Read Replies (1) | Respond to of 120523
 
lee, you will appreciate this!

For Not-So-Hardcore Traders Who Need a Bathroom Break: Swingtrading
By Toni Hansen
Special to TheStreet.com
3/25/00 10:20 AM ET

You want in on the action of momentum trading, but you don't have the time, knowledge or stress tolerance to handle the daily roller coaster of daytrading. Try what some call "daytrading lite" -- swingtrading.

With the explosion of online trading and the growing interest in highflying stocks like Qualcomm (QCOM:Nasdaq - news - boards) and Rambus (RMBS:Nasdaq - news - boards), you may be ready to abandon traditional long-term investment strategies. You may have seen phenomenal gains made by shorter-term traders who play the momentum in these stocks and you want a piece of it.

But you would never consider daytrading. Like me, you may have a job and maybe even a life, and have no desire to learn the minutiae of trading by the second. But trading every few days -- now that sounds more like it.

So how does swingtrading work?

Swingtrading combines the best of two worlds -- the slower pace of investing and the increased potential gains of daytrading. Swingtraders hold stocks for days or weeks vs. the minutes or hours that daytraders do. I typically ignore intraday oscillations, playing the general upward or downward trends over days or weeks. There's much less pressure to buy and sell at precisely the right moments than there is with daytrading. I can go the bathroom and even go out and pick up a hot cappuccino at the local Starbucks. Furthermore, to swingtrade, I don't need sophisticated computer hook-ups or lightning quick execution services and I don't have to play extremely volatile stocks.

The swingtrading techniques I use revolve around the naturally recurring cycles of the market. Even in strong daily uptrends, stocks have days and even weeks when they pull back before moving higher. They then trend back up, become overbought and pull back again only to repeat the cycle. I take advantage of these oscillations, looking to buy off support levels and short off resistance levels.

Here's an example of a play I call "core pullbacks." Its focus is on buying pullbacks from 52-week highs.

The first criterion is a strong uptrend. It's simply easier to paddle with the current than against. With any uptrend you will see a series of higher moves, followed by pullbacks and then new higher moves. This is simply the cycle of the market and my goal is to take advantage of it. A typical cycle can last several days to several weeks. To exploit these cycles I watch for pullbacks, looking for three to five days of lower lows and lower highs as the stock moves into support, resulting in less-steep drops.

In buying pullbacks, support is very important. There are several types of support that you should become familiar with: price support, moving average support and trend line support. Moving averages are used in technical analysis to show trends. As each new variable is included in calculating the average, the last variable is deleted. The most common moving averages are 20-, 50- and 200-day moving averages.



Take a look at the chart on BioSource (BIOI:Nasdaq - news - boards). Each time BioSource pulled back, it found support at the 20-day moving average. The second time was the better setup of the two as it allowed for the trend to develop more. We then had a series of higher highs (that day's high was higher than the previous day's high) and higher lows (that day's low was higher than the previous day's low) to allow us to draw a trend line. You can also see price support from the previous peak back in late December.

To enter this setup, you simply buy above the previous day's high on the pullback (upper horizontal line) with a stop under the low of the pullback (lower horizontal line), which is typically the previous day's low when the stock sets up. I set my stops on a sliding scale, but for a $10 stock, I set the stop 1/16 under the low of the pullback.

I exit the trade if one of two things occur: if the stock breaks under the previous day's low or if it breaks under the low of the first 30 minutes of the trading day.

The core pullbacks play is a very simple concept that is overlooked by many traders. This setup may not always work, but over time it provides very consistent profits.

I know this may sound confusing, but with a little education it's easy to do. What's great is that when I'm watching a stock, I can set my computer to alert me when it hits my price so I can saunter over, make my trade and go back to running on the treadmill or eating lunch. You can see why this is a growing trading trend. Swingtrading is for traders with a life.

Just remember to step away from the computer every now and then. Watch a bad old B-movie. Take the dog for a walk. Have fun and be profitable.

¸ 2000 TheStreet.com



To: lee kramer who wrote (90144)4/1/2000 9:45:00 AM
From: lee kramer  Read Replies (3) | Respond to of 120523
 
It was late Thursday afternoon. I was whooped. Exhausted. For the past two weeks the market had been wild. The bio's collapsed. The Dow held, then took off. The NASDAQ got clobbered, then it too took off. Barron's ran a story saying that a lot of the internet stocks were running out of money; that many would go out of business.
There was talk of the NASDAQ correction turning into a "severe correction", maybe even a crash.

I'm a trader. It was all I could do to hang in, make few dollars. Many of my trading buddies got slaughtered. Some stayed slaughtered, some came back nicely. OJ, as I recall, had one "nervous" day, but hnng in, stalwart fellow that he is, and made a lot of 'gemmers a lot of money. Jenna's watch-lists were good, one day was the best I'd seen in a year.

Even Dortmuner, the chimp with the clipped British accent and the 197 IQ , was feeling it.

"Log on to Priceline.com" he advised. "You need a few days in the Caribbean. Some sun, some body surfing. Find a girl. Relax. Enjoy." he said.

Delbert the Parrot, perched on Dortmunder's right shoulder, perfectly impersonating Dortmunder said "Find a girl, find a girl. AWK, AWK!"

I called my shrink, Doc Kronkite, who bore a striking resemblance to Mel Brooks and told him what Dortmunder suggested.

"Ridiculous idea" said the doc. "What you need is discipline. Work harder. Didn't you read chapter 23 in my best-selller, "The Truss: Friend or Foe"? Read on it boobeleh, read. It'll cure your problems."

I didn' want to read it. And I didn't want to see the doc at my regular Saturday morning session.

I logged on to Priceline.com. A round-trip to the Carribean cost a lotta beans. But what the hell, I was gonna give it a shot.

The thing about Priceline is that you put in a price. And they want your credit-card number. So if you get your price, you're hooked. But Priceline has a few "conditions." To wit: You have to take what they give you. You must agree to "layovers", you must agree to switch planes, more than once if they say so
and worst of all, you must agree to leave at anytime. If it's 2:00 a.m., you leave at 2:00 a.m.

So I put in a ridiculous price...$200, round trip. No way I was gonna get it, especially since Friday was a "peak" day.

An hour later they e-mail me. "Congrtulations...you've got a seat. $200 Round-trip." And it's a non-stop flight.

I tell Suzy. "Terrific" she says, "you'll get some sun, do some body-surfing, maybe get lucky and find a girl who'll help you "relax".

"You must be kidding" I say.

"Go. Find a girl. Trust me, she'll help you relax. It's Ok. I understand these things."

What a girl!

I get to Logan airport, head for the central parking lot, which by the way, is larger than the state of Connecticut. I park. I lock up. And just as I'm leaving a fine
looking blond-hair lady tells me that I've parked in a no-parking zone. I thank her and find another spot.

I head for my terminal. Did I mention that the garage is rather large? Remember Moses leading his people in the desert for forty (40!) years. He got lost is what. Same thing here in the garage; I see people, entires families even, walking, walking...looking for their cars. Crying. Very sad.

As I'm heading for the terminal I run into the nice blonde lady. I ask her which way to my terminal. She points. Then she says "You have beautiful hair."

I am somewhat taken aback, but without missing a beat I say "So do you." She smiles, I smile. This is starting off pretty good. "Feh! to you" I mutter to doc Kronkite.

I get to the terminal, go through the x-ray machine (not a beep!) head for the gate and my plane. While I'm sitting waiting the 40 minutes to board, a beautiful blond stewardess keeps looking at me. Me! I think about this; either she likes the cut of my jib, (Suzy insists I look just like Sam Elliott....I think I look like his motorclcyle, Cher, or her truly beautiful son "Rocky" in "Mask")...or my fly is open. I surreptitiously check my fly as the beautiful blond turns away for a moment. Yup, my fly is open.

As fate would have it, there was a striking brunette sitting accross from me, reading.
"Whatsha reading?" I ask. "1984" she says, "by George Orwell."

"Terrific book" I tell her. "Did you know they made a movie of it? Edmond O'Brien played Winston Smith, the lead."

"No" she says, batting her eyelashes.

Of course she didn't see it. She's a college girl. A college girl!

"Rent the video." I suggest. "O'Brien played a great Winston."

"I will, I really will" he said, clearly impressed.

Three girls I'd met in less than an hour; the guilt set right in. I'd have to talk to the doc about this when I got back. The doc would help me. He's a specialist. Did a whole chapter on "guilt". I didn't read it. But I guess I'd have to.

Got to the Caribbean and called my dad. "So how they doing?" I asked. He's a trader too. The Dow and the NASDAQ aren't doing much, but NITE broke out nicely on volume. Good you sold the AMZN April put options. It just took off." I don't do all that well with AMZN.

Darn. I'm down here to lie in the sun, body-surf, mabe meet a girl, get "lucky"...for relaxation of course... and what's the first thing I do? I check in to see what the market's are doing.

Maybe over the weekend I'll "relax."

Lee Kramer