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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (18810)	2/6/2001 3:37:11 AM
From: Walkingshadow	Read Replies (1) \| Respond to of 19374

Freeus, MO is on the overbought side, but as you say it is gathering momentum, having just reached a 52 week high. MO doesn't pull back much, so I don't think I'd wait for it to do so in this case. There are technical buy signals still in place, and MO looks to me to have more upside. Also, the downside risk is relatively small: MO adheres pretty closely to its 10 day ema, and the 20 ema is rarely breached. Since the 20 day ema currently is at 44, you could just buy now, and place your stop just below the 20 day ema for a maximum loss of about 5% or so. Then, if MO continues to advance, raise your stop as the 20 day ema rises with the stock, until your stop is at the breakeven point; from there, you could be much more leisurely about adjusting your stop, and taking incremental profits (which you might consider, depending on the size of your position). It is very nice to get to a point where your stop is at the breakeven, and you have already sold half the position or so at a profit! What a wonderful way to relieve stress! BTW, the 15-5-5 stochastic is an excellent setting with MO, both with buy and sell signals, and has been very reliable: askresearch.com You mention a profit target of 10 points or so, but keep in mind that it took 2 months for MO to rise from 36 to 46. Granted, that was a 28% increase over the starting price of 36, compared to a 21% increase from a starting point of $41.50. But still, you will likely have to be patient to get 10 points out of MO. However, such a stock might well find a nice spot in your portfolio, a medium-term holding subject to low volatility, but in an uptrend and a breakout just the same, and with a very, very reasonable valuation. JMVHO..... WS