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

To: Jenna who wrote (2476)	1/19/2001 7:42:03 PM
From: Jenna	Respond to of 6445

DGX marketgems.com Triggers are nice and exact and you get a warm and fuzzy feeling when you have entered correctly only to have the next bar pull back. This happens and its a polite way of saying "I scalped for 1/4 point". We want more. FIRST IMPORTANT detail don't pay much attention to triggers at the open of the market. This is an invitation to failure. Wait until 9:50 to 10:00 until the market adjusts its imbalances. There are few exceptions (great earnings report in the backdrop of sound market internals, a new FED cut, even a new upgrade, I might take the plunge) but they are the exception rather than the rule. Today DGX opened at the trigger and promptly pulled back. In the case of DGX which already preannounced a strong quarter that would beat estimates. You have to know at the outset WHAT DO I WANT WITH THIS TRADE: DGX was for me NOT FOR JUST A DAYTRADE. Maybe it will be a swing trade or longer depending on how it resolves itself next week. It has too much promise nor will this move 10 points in a day. The trade off is that you can sleep well at night. I have not yet seen a company that preannounced great earnings that plummets afterwards. DGX finally triggered again at 12:30 on climactic volume. I took the plunge and was more or less preparing to hold this one. The stop was set at 95. For much of the day DGX was not remarkable but it didn't play a "QLGC-like" roller coaster. At the end of the day I took it home. I did the same with CIMA after the FDA approval yesterday however with CIMA volume is really a bit low to daytrade anyhow. I am also long IDPH far and away my favorite biotech. When it pulls back a bit or you want to hedge with a put or short the BBH are fun and move well along with the sector, usually hitting the low of the day if you are in puts or the high if you happen to have the calls. Of course the trend of the INDEX (BTK) has to be established first.