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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: eyg who wrote (102525)	6/15/2000 4:50:00 PM
From: Jenna	Read Replies (3) \| Respond to of 120523

NTRO nice breakout of 6-week cup and handle today. marketgems.com For longer term trades you want longer term period of bulding a larger base because a longer term correction will most likely give a stock a chance to 'convalesce'.. Just like when you are recovering from an illness its not correct to jump into activity too soon or you will relapse. Technically and Fundamentally strong stocks (our high flyers) will have cup and handle formations (not v-cup but c-cup). From experience very strong earnings plays usually drop about 12-15% off their highs (before March at least they did). Its this very 15 or 12% that forms the handle and if you get into the stock before the handle forms you are buying at the high. The handle is really only a 'pause that refreshes'... In this newer scenario of late, stocks have dropped hundreds of percentage points, there are more v-cup and handle breakouts than C-cups because of the psychological implications of each and every rally, there is never time form a proper rounded cup. Rallies are sharp, from dropping stocks (v-cups)and so are the sell offs. You get the handles okay, because there are always sellers who are cutting their losses thinking the bottom is dropping out of the market again. The results are V-cup and handles.