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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Fuzzy who wrote (438)	1/6/2002 1:05:30 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

Sure, Fuzzy, I wish others would bring up picks that make sense so we could analyze them together. As many of you know, the picks this thread really likes are quality names that are either ready to break up and out on good growth prospects, yet still are at a reasonable price, or... quality companies that have performed well in the past (meaning that they have had excellent earnings) but have fallen on hard times (i.e. SLR, BMC, ORCL, maybe HAL, etc.). Our job is to find out when it's safe and right to go "back in the water" for either a quick trade or moderate hold. We do not believe in holding many stocks long term, since "buy and hold" does not work well anymore. The charts can really help determine if a stock is a good R/R. Bollinger bands, 20 and 50 day SMA (or even 10 day SMA's in a fast, volatile market), momentum and money flow indicators and a whole host of other readings are very useful. Tracking sector indices like the BTK, SOX, DRG, OSX (oil), XAL (airlines), etc. are also very useful to determine where money is flowing. We especially like stocks that have based for months, as that increases the odds of a solid advance once the stock turns around. That is one of the reasons I loved BMC at $16+ a couple weeks ago. Fuzzy, you are right, the EMF sector (SLR, JBL, FLEX) used to move together very nicely and still does to some extent. Many others do too, so sector watching is important. I like the BTK sector if we get follow through on Monday and do not like the tech sector nearly as much after its run-up. Of course, we also have to make sure the Market itself looks good, too, to make our entry even more timely. There is talk of a market decline next weak, at least in tech, so we'll keep our eyes out. EMLX short is one I am looking at, even though I almost never short.