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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: dejavu who wrote (2253)	1/18/2001 3:31:04 PM
From: JeanD	Read Replies (2) \| Respond to of 6445

KANA getting hammered as well.

To: dejavu who wrote (2253)	1/18/2001 4:25:42 PM
From: Jenna	Respond to of 6445

The V-shape Chart Pattern versus the Bowl Shape.. I will be showing you examples of both kinds. Each works with strategies that are slightly different. Chart patterns are important but if you don't take into account 'external forces' like sector strength, news, earnings expectations, earnings growth and multiples, investor sentiment, you will only be seeing a half-baked picture. EPNY had some great gains moving when we called it from 30 to 49, but as all these V-shaped charts prove, when there is not enough time to build a base all you have are sharp moves to the upside and downside. I enjoyed these stocks on the long side, and giving each up after 3-4 up days. The latest was IWOV after a 4 day run up from 21 to 36. What can you expect from stocks that give so much so quickly? Its absurd to expect them to give 50-70% a week each and every week. When you deal in volatile stocks you have to be ON THE BALL and hang around them, nurse them and watch them carefully. They are definitely worth the trouble. Look at the charts of ELNT and CRUS.. here we have the slow and rather nice bowl shapes that are forming a bottom and a base and these will move up more predictably. EXFO was another beauty we called for a play through earnings and it was so good that even today it gave another 6 1/2 points. These stocks have to be treated differently because they are not your regular ORCL (just look at that abyssmal chart) or even like MRK or FNM.. If you learn how to read those V-shaped charts which inevitably lead to breaks off the double top you can enjoy their gains. You can't leave home though and forget them.