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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (465)	10/5/2002 10:46:30 AM
From: Sergio H	Read Replies (3) \| Respond to of 23958

Ken, market efficiency works out over time. If the market was efficient 24/7 many financial instruments, particularly those that are designed to alleviate investment risk from uncertanties, would be rendered useless. If the market was consistently efficient, stock prices would be remain mostly unchanged at the majority of daily sessions. The stocks in your list have some noteworthy attributes besides low pe and high growth. Most importantly, these stocks are always excluded from the market gyrations that we've been experiencing. Whether the DOW goes up 200 or down 200 is irrelevent to holders of DWYR shares, for example. These stocks are not market leaders. As such, what is relevent to these stocks is not the daily gyrations, but the market trend. These stocks will generally follow the market trend and offer fantanstic opportunities when the trend reverses from its current course. What to do for the present time: 1. If you own stocks that are undervalued and from your estimation will continue to be undervalued; HOLD. 2. If you're thinking about buying a stock that is undervalued and ignored by the market, BUY half your normal position and wait for the market to turn around before adding. 3. TRADE, TRADE, TRADE!!! For the most part, stocks will remain in a trading range while the market looks for a bottom. Buy and sell the trading range. Don't be afraid if the trading bottom is broken. If you're trading stocks that are undervalued, a new bottom will only be temporary if you've analyzed the situation correctly. One fantastic example of trading range volutility is being offered daily by MDCO as we've discussed, averages 1 point range per day. But, trading does not have to be done on a daily basis. ACO has been offering great opportunities that require patience. Even low volume DWYR has been tradeable if you watch the trading range for entry points. This post is about investing and using trading opportunities to keep yourself from depression while the market is snoring at unrecognized fundamentals. Trading is something that you, Ken have a master's degree in and should therefore be exploiting market opportunities as I am sure that you are doing. I look forward to your leadership in this regard on the Amigo thread. Perhaps you would like to add ORBT back in to this portfolio.