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Strategies & Market Trends : Predicting news and runs for big % gains -- Ignore unavailable to you. Want to Upgrade?

To: scouser who wrote (1908)	1/7/2001 3:01:58 AM
From: CIMA	Respond to of 2182

Stockscores.com Perspectives For the week ending January 5, 2001 In this week's issue: - Commentary: Don't Always go with a Winner - Feature Strategy: Breakouts - Tip of the Week: Site Update - How to subscribe to the Stockscores.com Perspectives Daily Edition *Stockscores.com Commentary* The Utility Mutual Fund manager sat proudly during his interview on CNBC, after all, he was the top performing mutual fund manager in America. At cocktail parties, it was him and not the dot.com mutual fund managers that everyone wanted to talk to. It was a great time to be conservative; it was cool to talk about the things that really powered the Internet. And the toaster. Mutual fund investors often look to who has been the best when they pick a fund. The fund that performed the best last year is their choice for the place to park their hard earned investment dollars. After all, the person managing the fund must be pretty smart to have beaten all the other fund managers in the world. Unfortunately, the hero of our story, Captain Utility, had long been an underachiever. The year previous, it had been the dot com managers who were stars. Our utility man had been relegated to a spot south of average, where an interview on CNBC was nothing but a dream. But today, his dream had been achieved. As he and the host poked fun at the dot com managers and their embarrassing performance, you couldn't help but think that Captain Utility's fame was fleeting, for headlines were screaming of the financial difficulties of California's biggest utilities. Would our star be carrying the torch for the managers with the electric personalities next year? Probably not. Whether you invest in mutual funds or stocks, putting your money on last year's winner is usually a recipe for failure. Captain Utility was not successful because he was smarter than the other fund managers. By the virtues of the title given to him as Utility Fund Manager, he was destined to succeed because the market for utility stocks was strong. He had no choice but to buy these stocks, and the overwhelming current of the sector carried him to fame and fortune. Meanwhile, last year's dot com stars were carried over the falls. To be a winner, investors have to pick next year's star. History has no bearing, and past performance does not guarantee future success. What sector will it be? If you find that answer, maybe you can be on CNBC next year. Enough Said. *Stockscores.com Feature Strategy * This is a tough market to make money in, since most stocks are heading lower. To find stocks that are beating the market, it makes sense to find stocks that are near their 150-day high. Doing so makes sense, since most stocks have been falling and are more likely close to their 150 day low than they are their high. This little strategy is a way to find some stocks that are beating the trend, and showing potential for an uptrend. We want to focus on stocks with high Stockscores that have not yet seen dramatic gains (and the opportunity taken away). We also require that they show signs of some excitement, and the interest of the market. Set up the following criteria for the Market Scan filters: Score >= 80 Price <= 100 Gain/Loss <= 15% over the last 10 Days Price of 15 day high <= 10% (this means that the stock is within 10% of its 150 day high). 15 day resistance = Breakout $Volume >= 1000000 This week, the scan revealed 29 stocks. Most looked decent, but the following best fit the visual requirements that we want to look for in the charts. Basically, we want to focus on stocks that are breaking out of trading ranges and are showing an increase in volume as they do so. Limited overhead resistance will make it easier for these stocks to enjoy uptrends: Atlantic Coast Airlines (ACAI) airlines have done well recently, and it looks like this one will join the party as it is breaking through resistance after trading heavier volume over the past month. Alcan Aluminium (AL) strong resistance at $35 was penetrated Friday, leaving some clear air above for this stock to fill. This is an example of a cup and handle pattern. Engineered Support Systems (EASI) still has a bit of overhead resistance to eat through, but the break on Friday was accompanied by stronger than normal volume and price performance indicates the market is taking notice of something this company is doing. *Stockscores.com Site Tip of the Week* There are millions of calculations done each day to produce the Stockscores and technical indicator ratings that you see on the site. If you want to do your daily research on what stocks will do well tomorrow based on the most current trading activity, the site is updated about 4 hours after the market closes (it takes that long to build the database). You can tell when the indicators were updated by checking the Indicators as of date at the top of the Stockscores report. *Stockscores.com Perspective Daily Edition* Each day, we scan the market for opportunities and reveal only the best to our Daily Edition subscribers by email. Subscriptions entitle readers to see our regular stock picks and our daily market commentaries where we show a historical line representing the Stockscores. A valuable way to find stock opportunities, but to also learn about picking and trading stocks. For more information and a free two-week trial, please contact Cindy Rowe, who is in charge of subscription sales, at perspectives@stockscores.com. *References* To get the Stockscore on any of over 20,000 North American stocks: stockscores.com For a background on the theories used by Stockscores: stockscores.com For strategies that can help you find new opportunities: stockscores.com To scan the market using extensive filter criteria: stockscores.com To build a portfolio of stocks and view a slide show of their charts: stockscores.com To see which sectors are leading the market, and the stock components: stockscores.com ***Change of Email Address or Removal from Email List Please go to the Registration area of the site, and utilize the Edit tool. Disclaimer __________ This is not an investment advisory, and should not be used to make investment decisions. Information in Stockscores Perspectives is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of Perspectives may have positions in the stocks discussed above and may trade in the stocks mentioned. Don't consider buying or selling any stock without conducting your own due diligence.