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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: gooch_the_farmer who wrote (160718)9/15/2000 7:48:54 AM
From: edamo  Read Replies (1) | Respond to of 176388
 
gooch....ot ot ot.... "more then ta"

above all i look at the fundamentals of the company....growth, profitability, consistent management, brand identity......

insofar as the stock of the company, liquidity is foremost, institutional holdings and interest, and strength as compared to its peers.

i was a ltb+h advocate since my initial market exposure in 1970. the last five years or so, with the parabolic gains, topped off with early 2000 selling and losses have forced me to reconsider strategy. the liquidity that is desirable can also cause extreme volatility. consider that in the 70's a busy day on the nyse was about 11m shares traded...in this new era, a single issue can trade this in an hour! institutions appear to trade frequently, add to the mix the "nouveau daytrader", and you have a bit of chaos....

i'm not stating that ltb+h should still not be the cornerstone of a growth portfolio, but consideration should be given when the perception, as in the case of dell, changes for quarter after quarter. this is where the momentum becomes important.

if you analyze "dell the stock", more money was made conservatively trading over the past two years then buy and hold...

using simple indicators, slow stochastic and williams %r, one can clearly see accumlation/distribution, overbought/oversold, and momentum change patterns.....it will get one very close to a topping or bottoming of a stock. it will not tell the duration of same....any "news" positive/negative, stock specific/overall market will take precedence over the ta, and at times give extraordinary opportunity, based on an aberration of volatility to take a position in the stock.

consider the overall volume of the markets, the swift electronic trading, computer trading, etc....the parameters of these trading programs are not set in underlying fundamentals, but on technical indicators....

applying the basic indicators to dell it shows a longer term down trend of stock price, but a short term bottom.....williams giving an upturn indicator, stochastic not yet turning. if i were to take a long common, october long call, october short put position, i would be looking to do so within the next few days. conversely i would close the position when the indicators show a reversal....this can be in a day to months...

best you can do is to become intimate with the companies you own or desire to own, this will give knowledge that will allow you to analyze news and analysts comments. you have the same ability as an analyst with research of public info.....it's the inside "stuff" that can be harmful to the investor..

if you pm me with your e-mail, i can send you an si chart for dell with parameters set, so you may review the price action/volume against the basic indicators....

good luck...ed a.