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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: Jenna who wrote (118463)	12/7/2000 7:06:40 PM
From: Jenna	Respond to of 120523

*WEBM:* Importance of Soaring ADX and Resistance Broken on the Daily Chart (and 15-minute chart) marketgems.com marketgems.com WEBM was on the Watch List for December 4, and the chart indicating a minor resistance level of 64 23/32 on the DAILY chart. Daily chart resistance levels are STRONGER than intraday obviously. On the 4th WEBM triggered a short play, but on the 5th when WEBM gapped up right to the 67 point it was an obvious break through the minor resistance. Someone asked yesterday if this move automatically triggers a buy, well no, not if the stock moves down immediately but in the case of WEBM we had a rally mode and with market internals favorable and the WEBM bars making higher highs, it was optimum condition for a long play. The soaring ADX was the extra impetus you needed for that long play. Without even holding through the 6th and 7th.. there was opportunity to enter long based on the continuing strength of the 15 minute chart, soaring ADX, and the terrific moves on the daily chart of WEBM (not shown here). If you don't follow chart patterns and watch resistance/support levels, (we use Bollinger bands to clarify the strength of the uptrend) you will be 'moving' without any indicators, directionals or map. That would be tantamount to driving a car to Amarillo, Texas from Boca without a map, or following any signposts. You would still be moving all right, 10 weeks later you'd still be moving but where would you end up? In conclusion: When we post on the watch list optimal entry levels we understand that there could be gap ups and gap down, but invariably the stock returns to test the support/resistance at the daily chart. So its up to those of you not in the trading forum, those you subscribing to the Watch List and Earnings Plays Newsletter, and even just our Gemmers on this thread who still get this information on the thread, to utilize it and watch the stocks. Its only 8-9 plays a day, not 3,000 to 8,000. Gobs and oodles of scans that leave the trader even more baffled than before.