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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: Peace who wrote (112543)	8/26/2000 1:21:25 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

Important important tips for the short term/daytrader 1) A stock that is in a strong uptrend like ADRX, MANU and CMRC will ALWAYS breakout after a pullback. When the signposts are signaling impending breakout, wait a day or two it will come. CMRC, AMTD, CORR and ADRX all broke within 1-2 days of the chart reversal. marketgems.com marketgems.com marketgems.com marketgems.com AMTD a day after it was on the watch list.. after the first range exansion breakout it looked like AMTD might not be a one day wonder.. and AMTD did break to another range expansion breakout the following day. When you buy stocks that are just at the HIGH OF THE DAY near the end of the session, you have no way of knowing if it will continue up the following day. I would give the stock 2 days before I'd decided if it were worth entering. High of the day means nothing in a vacuum. Look at it this way, the High of the Day is like a reversal bar. A reversal bar means nothing until it has more criteria. Are you near an important moving average? How much volume was on the day of the breakout? Are you in a context of 3-4 down days on a strong chart? Are you just having a bearish flag in a stock with a falling (50, 20 or even 150 day) moving average? That could set you up for a short play on a stock that is HOD. Stocks that are setting up for shorts are just moving above minor support which becomes resistance if they are in a longer term downtrend. The best short setup would be at this Minor resistance (this can the HOD or temporary bearish flag. Any break below this minor resistance would be a short opportunity. Only in the context of the historical price patterns, a two day trend can you have the indication of a new uptrend. 2) When the Market Internals (S&P 500 futures and Nasdaq futures, Trin, etc) are negative I would give the stock more than just 1 or 2 5-minute bars to enter. I might wait until the stock enters the 10:00 reversal period and put in a buy stop at the 30 minute high. marketgems.com 3) Not all stocks will be as cooperative as ABGX in the chart below.. a good deal of stocks will give you only about 4 or 5 5-minute bars before they begin the 10:10 to 10:35 reversal period. You should be prepared to take profits in a market that is weakening by 10:10 or if they market internals cooperate like in ABGX, ZIGO, TECH, or some other good trades this week you might hold until the 11:30 doldrums. Never think that if your stock is moving up it will automatically continue. Most uptrends don't last more than 4-5 bars on the 5 minute chart or 2 bars on the 15 minute chart. Of course the stock might just go into consolidation or downturn, but you have a pretty good chance of another breakout at the 2:00, 3:00 or 3:30 reversal period. marketgems.com marketgems.com marketgems.com marketgems.com 4) If you are a day or short term trader you CAN NOT give yourself a rule of thumb to enter a stock if it takes out the previous day's high. That might be good if you are a long term trader, but what if the previous day's high is 6 or 7 points away from the next's days' open? What if there is an exhaustion gap down, does it mean that you can't enter until the stock goes up 8 points? Of course not, it means that for the daytrader or swing trader you must wait for the 5 or 15 minutes bars and get the stock off the high of the reversal bar.. the current day's trading means a whole lot more than yesterday's trading. How important is the daily chart? Extremely.... I would enter a stock like ZIGO after I see a overwhelming downturn after earnings report especially after I've been long for the two days prior to the report. ZIGO was NOT a hold through earnings, but the day after the report ZIGO gapped down once again and closed that first 15 minute bar even lower than the gap down open. But what happened next? ZIGO recovered swiftly, so much so that it was up from 55 to 80 in the next three sessions. So would I have waited for ZIGO to fill the gap on yesterdays's close? Never.. You would look at the the intraday chart and determine entry according to the present chart patterns. Entry will be on the second or third 5 minute bar when they are all making higher highs and highers lows.