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Strategies & Market Trends : Drillbits & Bottlerockets -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (3375)	2/12/2001 9:57:49 PM
From: Rich1	Respond to of 15481

Just scuttlebutt thats all..<g> Interesting comments in yesterday's Big Report.....Think they were talking about me..LOL..No license Plate yet..No bumper sticker either..Am I the only one?? Intersting comment about box sizes also.. From 2/12/01 Big Report from DWA.. <When Angels Fall: Or, Only Fools Fall In Love The homerun in baseball is one of the most awe-inspiring feats in all of sports, even more so than the obligatory wide-angle pan towards those XFL Cheerleaders. As a society we tend to worship and idolize our homerun heroes, turning them into mythical giants that transcend the game itself; the gods of old, Aaron, Ruth and Maris, and today's heirs, McGwire, Derek Jeter and Chyna . . . errr . . . Ken Griffey Jr. This business is the same way. Money managers and stock pickers can earn no small measure of fame and idolatry by selecting the one stock that goes on and becomes their version of a homerun. Tthe same could be said for the now infamous fundamental analysts on Wall Street. The Henry Blodgetts and Mary Meekers of the world were made deities long before investors chastised them. Every broker and analyst knows the feeling that accompanies a successful stock pick – you know, the one that finds its way into your best client's account at 25 and just keeps on moving to 125. Among the more difficult tasks a broker has is managing his, or her, emotions and maintaining objectivity when things go right. We want to forgive our heroes and we hate it when anyone tries to tear them down. We will defend these heroes until there is no rationale defense left on the table, and sometimes that isn't even enough to stop us. This brings us to one of Wall Street's most tried, but true, aphorisms: Do not fall in love with a stock! How do you know if you have fallen in love with a stock? Well, if your closest friends sometime refer to you a by ticker symbol rather than first name, you may have fallen in love with the stock in question. If your license plate makes reference to something that trades on the OTC, you have probably fallen in love with that stock. If you see the CEO of a company you own on the cover of Fortune Magazine and convince yourself this is a good thing, you have definitely fallen in love with a stock. If you see asset liquidation as an opportunity to increase your stake in said company, you may have . . . you get the drift. So if you have one of the "Honk if own EMC" bumper stickers on your vehicle, refer to the bold text above. Love, by definition, is not logical but rather emotional. It is the most right-brained of all emotions in fact, do not fall in love with a stock! Fortunately, we have the Point and Figure charts to prevent us from falling victim to the blind devotion that can turn a great stock pick into an average one. One of the best ways to maintain your objectivity, and keep love out of the picture, is to pay very close attention to the two major trend lines; the Bullish Support Line and the Bearish Resistance Line. These trend lines help make the buy and sell decisions for you. If we are longer term investors, trend lines keep us focused on the primary technical condition of a stock, and allow us to ignore the inconsequential short term sell signals that can occur on a stock's way up. When a trend line is broken it signals a change in the overall trend of the stock since these trend lines identify major areas of support and resistance on the Point and Figure charts. With the volatility of many names today, we elect to use an enhanced box size to give us a clearer picture. As a disclaimer, however, if a box size greater than 2 points per box is required you are most likely either looking at Berkshire Hathaway (BRK) or a stock unsuitable for most investors. > Hey if you don't have a sense of humor than what???