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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: MrBuzz who wrote (117115)	11/21/2000 11:36:37 AM
From: Jenna	Read Replies (2) \| Respond to of 120523

CMVT can tank even more without any technical analysis of this stock in isolation just insofar as ALL technology stocks pull back as market internals weaken. Technical Analysis in the last 8 weeks has been very successful in calling and continuing short plays and continuing short plays. As far as to the long side, it has if you are talking about sectors like financial, insurance and healthcare. When you have weak technology stocks and they have moved below the 200 day moving average, most 'rallies' are just platform dives for further shorts. However CMVT becomes interesting only insofar as earnings are coming out. So we should see ARTIFICIAL VOLATILITY today and the "technical analysis" will not distinguish why this volatility is happening. Its only techno-fundamental analysis that will 'read' the reasons for increased volatility. The increased volatility makes CMVT a possible (and has already been) for multi point scalp trade. However if the market internals today were much stronger, say Nasdaq were up 80 points, you can be sure CMVT would be moving much higher and "anticipatory upswing" would increase accordingly. Technical analysis of stocks in isolation also has proven totally ineffective again for the long side, because market internals and key market indicators are now part and parcel of any 'trade'... If traders ignore them, they might succeed in making one or even two trades, but eventually it will catch up to them and trading profits will decrease proportionately as odds increase against good trades without taking the internals into account. This has been my strategy for short plays in the past 8 weeks and they have been the best trading weeks since January.