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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Mike M who wrote (54367)	10/21/2001 10:20:27 AM
From: Zeev Hed	Respond to of 70976

In a bull move, you don't buy and sell, you buy and hold, and raise your stop losses, IMTO. With that part of your folio which is a core, you try and go into long term growth stock with good fundamentals (value stocks as well as growth stocks, examples are MRK selling at a PE of 20, yielding a true growing dividend of more than 5% <nominal dividend of 1.4%>, TYC, selling at a PE of about 17, having had a trailing growth rate of 37% and forecasted growth rate for the next five years of 20%, or COO that has similar characteristics) and to satisfy your "trading cravings", you write covered calls when you think they are at the top of a trading range and buy them back at the bottom of that range, or keep rolling the options month after month. With that part of your folio which includes "swing" or "period" trading, you buy widely followed stock like AMAT, NVLS, KLAC, INTC etc., making sure you are on the right side of the "trend". But always, get out when the trend goes against you (or when your rising stop loss has been "hit"). There are other good strategies that have proven useful in the long range, such as the "Dog of the Dow" (but I would keep out of EK and JPM), or value stocks as you mentioned selling near book and at discounted PE to their growth (MAGS was one such stock, but since it doubled, it no longer is), hopefully catching them when institutional interest starts to increase (as indicated by volume spikes well above twice average volume on a price rise). Zeev