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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: nokomis who wrote (113097)	9/4/2000 3:04:40 PM
From: Jenna	Read Replies (3) \| Respond to of 120523

Overbought stocks can move higher and higher.. However, its like a sign post with a flashing yellow light letting you know you have to be aware of a possible reversal at any time, even on the intraday chart. Stochastics and CCI are a fine predictor of possible trend changes even before the price changes. When they turn negative and slope downwards you may expect prices to move down. MACD and other indicators are somewhat slower and their main value lies in a divergent reading... when the prices are fine but the the MACD is moving a new intraday or daily price chart low, you might have a sign of impending reversal.

To: nokomis who wrote (113097)	9/4/2000 4:35:21 PM
From: lee kramer	Read Replies (2) \| Respond to of 120523

Nokomis: At the risk of being a buttinski, let me give you my take on STXN...and the conundrum you posed; STXN had a breakaway gap (21-22 1/4) followed by a 1-day run from roughly 22 to 26. Then a 3-day bull-flag bringing it back to 23 1/4. Then a 3-day bust out of the flag on nice volume expansion to 28. Sure, STXN looks a bit short-term overbought as Jenna indicated. But if you lok at the daily chart...the stock looks like a fine trading buy on a pullback...the stock is clearly in an uptrend. No guarantees of course...but the probabilities are highly in your favor if it's bought on the pullback....with a sell-stop of course. I shall watch it and buy the pullback should it occur. (Lee)