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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (83491)	10/28/2002 11:04:39 PM
From: Tom Pulley	Read Replies (2) \| Respond to of 99985

Ibexx, thanks for the kind words. As far as what I'm buying, I'm not much of a stock picker and generally just post buys and sells of the QQQ based on my market timing model. So now I'm 50% long QQQ and 50% cash. I came to this approach since 70% of a stock's movement is based on the market direction and 20% is based on the sector......leaving just 10% of price movement based on the particular company. So, I decided to spend my time working on the factor that results in 70% of price movement instead of the factor that results in 10% of price movement. So, trading QQQ is what I mostly do. All that said, I can't help buying a few individual stocks from time to time. On the latest buy signal of the timing model I bought some Qcom and Pwer. Pwer is a stock I've followed for a few years and had tremendous insider buying. I sold it when I just went to 50% cash after a nice gain. Qcom....you probably know more about them than I do, but it seems likely they should grow their earnings 5+ times over the next 5 years as they gain market share through CDMA growth and conversion of GSM to WCDMA. At a recent PE of 25 I bought it for a long term buy and hold. However, let me warn you..... following my individual stock picks historically has not been the road to financial independence! Tom