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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: David_I who wrote (103829)	6/22/2000 11:17:00 PM
From: Jenna	Respond to of 120523

David your questions are very good and properly deserve answers that I will work on this week as a "Frequently Asked Questions" part. The questions are practical and not really covered in the new "Strategies" area of our Website. What things should I do when I first get the next day's WL to best prepare for using the WL during the market hours? First: I would look at the technical glossary so I know what the abbreviations stand for. In one look you can see as much or more as you would in a chart. For example in one glance you can see the volume it had compared with the average 30 day volume (1/30), The % the stock closed in compared to the daily range (85%) would mean that the stock closed at the 85th percentile of its daily range. That would be a very good sign for recovery or continued momentum. W14dV would be the Wilder RSI.. If its above 70 or 75 you can see at a glance if the stock is already coming close to overbought. (Sto9V) are the stochastics.. Also an indicator for Overbought/Oversold. In today's markets "oversold" an indicator under 30 means oversold and if the stock is already trending nicely, it could mean more upside as the Stochastic indicator is showing a lot of upward movement. Ideal would be a stochastic at 30 to 50'ish.. but under 30 is okay also. I try to keep them under 75. On wildly uptrending stocks like KEI and TLGD you might find a stochastic of 90 and that doesn't make them bad stocks, just a gentle warning that the stock can turn south if you don't watch yourself. That doesn't mean much unless the Wilder suddenly slopes down. Then the "overbought" has new meanings... It might be alerting at the end of an uptrend... 50 MA and 20MA is how much the stock is trading above its 50 and 20 day MA.. Any number higher than 100 means its trading above that particular MA..http://www.pristine.com/gems/techglossary.htm Second I would put them in a database called "Watch Lists for June 13".. "Watch Lists for June 14" etc. I would take the latest watch list and put up daily charts on all 10 or 11. From the daily charts, the next day I would go through the list carefully at 9:30 (don't buy yet) and again at 9:50 to see which are already trending up. Once the market day is underway what must I do or look for so that I use the WL information most effectively? With these, I would put up 5 and/or 15 minute charts. To these charts I would apply the trading strategies in our introduction. We are looking for 3 bar 15-minute minute charts and breakouts or confirmation of the "Reversal" from the previous day. The Watch List would be the "set up" day (which I have set up by choosing those particular stocks. Look at the next trading day as the "BUY day" which would confirm the set up day. Example say VLNC technology had a "Range Expansion" day so I might put it on the watch list. That was the "Set up" (i.e. look for a stock with very high volume, that has a high range day etc..) "BUY" if the next day VLNC continues to uptrend it would be a buy on the third bar of the 15 minute chart or the third bar of the 5 minute chart depending on your nimbleness. Stock should be bought fast but not that fast. Don't forget we waited for the first 20 minutes to 1/2 hour of trading. It just seems fast. From experience, the stock IN MOST CASES will move up 1 or 2 points more than the breakout and only begin to trend down after 1 hour or so. The quickest I ever sold averages about 1/2 hour. An low-hold trade for me is 1 hours and that is why they are pretty good trades. A medium-hold trade would be 2-3 hours. A long day trade would be for the entire session. A swing trade I would hold over for the next day. I would say about 30-35% of the trades have been swing trades since May 31. From March to the middle of May they were solely daytrades. And finally for the earnings plays.. We are waiting for "anticipatory upswing" That is explained in the "Strategies" section. On a thumbnail its the special momentum, almost magical, that comes onto a stock in the week or two prior to the earnings report. The momentum takes the form of a 'breakout' on high volume and that's where your favorite trading strategies come into play. It could be a 10, 20 or 50 day moving average breakout, it could be point & figure breakout, or an ADX breakout (sudden move from trendless to trending stock).. Lastly I would get the book: "A Beginner's Guide to Day Trading Online" by Toni Turner. This is not a "plug" its just a good daytrading book for beginners, but it also utilizes some of the Pristine Strategies and set ups that we will be using for Pristine Market Gems Trading Forum and what I use for "buy" triggers. They are simple and they are good.