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

To: WhatsUpWithThat who wrote (4480)	3/27/2002 11:04:42 AM
From: Dave Gore	Read Replies (2) \| Respond to of 16631

"Whats", the moral for me in SHORT TERM TRADING is to try to beat the masses to where I think they are going to go. As you know, I think currently the most important driver is earnings and guidance. No big secret. So, if I hear on CNBC or see on Briefing that a company exceeded earnings or is providing good guidance, then I will often enter a trade quickly if the stock is: 1) on my watchlist and one whose tendencies I have studied 2) reasonably popular (i.e. currently trendy with traders) 3) somewhat volatile and reacts well to good news 4) at least reasonably sound fundamentally relative to peers in its sector 5) has a history of good analyst support since people do still listen to them 6) is in a sector or sector niche into which money is flowing 7) most importantly, it is undervalued per my T/A so represents a good Reward/Risk play. FOR MULTI-DAY, INTERMEDIATE OR LONGER TERM TRADES, I tend to be much more concerned about fundamentals, like PE and PEG. Stocks like COST, WM, SGR, and KG when they are cheap are examples of ones I recently bought at lows and sold after holding a few days or weeks. COST I currently own. I may often re-buy these for multi-day holds, but in this market I am not making a lot of longer term bets. What may seem like a rather odd exception to the above rule is that I am holding MCDTA for an intermediate hold, unless it breaks major support. It is tough to daytrade and often moves counter to others in its own group. The bottom line is that it has dropped so far from recent highs and its fundamentals should improve a great deal in the next quarter or two, as they come out with important new products. They also hold important patents.