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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: livn-let-buy who wrote (118963)	12/13/2000 9:51:28 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

AMCC, CFLO.. you have to stick with the same 20-30 or so stocks during this difficult period. I used to follow about 250-300 stocks incessantly and knew their every move, but now I follow about 20 in a day and altogether about 40 stocks in a week. We have a lot of similarities and 'variations of a theme' in this market. Traders who have certain styles might not adapt to this different changes. That nice gain in the morning in CFLO yesterday and the sharp sell that lasted almost from 11:30 into the close I've come to anticipate this volatility. If you are trading gobs of stocks that come fresh out of daily scans with 40 or 50 results, you will get swallowed by these fluctuations. AMCC was not such a surprise. I was surprise the uptrend lasted so long. If you will notice, when the market internals are bad, there will be sharp fluctuations. Conversely, when the market conditions are excellent, you might see a selloff just into the 3:30 reversal period as profit takers come in. This volatility is not manipulated.. its just the fear of short term traders and daytraders to commit to a trade when they have been conditioned like Pavlov's dogs to 'sell on any rally' even if the rally is for 30 minutes and definitely if its 2 days or 3. Also everyone knows by now what we have known for 5 years, that technical analysis is a mirror of the fundamental health of the stock. Once the technicals began to run amok and true valuations were left in the dust in favor of the more 'exciting' higher multiples, the spread between fantasty and reality began to widen.. when that balloon of fantasy finally burst, did traders and investors come back to earth with a hard landing. When I used the phrase "variation on a theme" what I was referring to was the internet sector. The same thing happened than and what is happening to these blimps are just a 'variation of the internet theme'.