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To: -Mad-Jon who wrote (76)	8/19/2000 8:52:32 PM
From: Rolla Coasta	Read Replies (2) \| Respond to of 164

The inviting ratings of IBD are backward-looking, and can be a dangerous trap Jon, you are right on it. Sometimes, good ratings really mean a sell signal. For me, it is not reliable. I would only buy on stocks having U-turn shape or breaking 52-week high. This chart looks interesting to me: clearstation.com It looks like SMRA is in accumulation phase, ready to break out ? Anyone has any opinion on this one ? The rating on SMRA is used to be good few weeks ago - A A A B I'm thinking about jumping in next week. Things look good for this stock. Regards, QP

To: -Mad-Jon who wrote (76)	8/19/2000 9:49:48 PM
From: John Madarasz	Read Replies (1) \| Respond to of 164

I think alot of people are missing a key point... Bill O'Neil clearly states on pg 26 in his latest book "24 Lessons" "...major price advances of all the stocks I've mentioned followed periods of price correction and base building in which the prices made no real progress. These chart bases were almost always formed specifically because of a decline or correction in the general market averages.In each case when the market finally turned, had a clear "follow through," and began a new uptrend, these leaders were the first stocks in the market to advance to new high ground." It's not about buying a "canslim" candidate from Paul Senior<gg> or anyone else at or near a top, and setting your 8-10% downside stop. A large part of the system is about recognizing repeat performers and buying them on unwarranted downdrafts that are market imposed. Tantamount to the system of picking stocks, is the monitoring of the overall market internals and the timing your buys based on solid technical follow throughs in the market after corrections and declines. O'Neil goes into great detail on recognizing distribution and accumulation in the markets, and when to enter and exit based on these important indicators, and many others. This is an extremely important thing to realize and is crucial to making large gains. Best regards, John M