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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 (3675)	2/2/2001 12:40:20 PM
From: Jeff Jordan	Respond to of 6445

we've pulled off lows...everyone afraid of CSCO?http://www.tenlights.com/MyPubSub/jjordan/nq.jpg

To: Jenna who wrote (3675)	2/2/2001 9:32:12 PM
From: Jenna	Read Replies (1) \| Respond to of 6445

SLNK and the "SMASH & GRAB Strategy" marketgems.com marketgems.com ..When you have a good earnings report, and as we posted on the watch list, SLNK had a heck of a good one, I would consider entering 5 or 10 minutes before the 9:50 to 10;10 period. Earnings plays do snap gap as profit takers want to realize the quick 10% they can get. In a rising market it might be okay to try to hold a bit longer like perhaps after the 10:10 maybe through 10:25 but when market internals are deteriorating and the bars are pulling back, quick strategies have to be learned or you'll miss out on the "smash and grab" trades. SLNK opened well at a gap from yesterday's close and the 9:35 bar started looking a little intimidating, but the 9:40 to 9:45 bars were looking better and entry was could have been at 13 9/16 which would have been early (see the chart but it was the resistance and that is why SLNK looked a little weak there until it broke 14 and reached as high as 15 3/8 before it just started retreating like the rest of the nasdaq. It was conceivable to take at least 1 point profit which equates well in such a cheap stock from 9:45 through 10:15 and that is time enough for a good 'smash & grab' trade which is simply one that gives about 70% chance for a reasonable profit. SLNK we knew in advance the possibility that it could retreat yet also knowing that volume was swelling and the report was excellent. Think about this compared with trying to catch a falling knife today and go long some of the worst falling stocks just because they 'rallied' for 1 or even 2 5-minute bars, the chances here are very slim for any good trade.