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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (2268)	2/14/2005 10:06:59 AM
From: profile_14	Respond to of 13449

Larry, yep, since I try to combine both and it works. Why fight with one hand tied behind your back? Fundamentalists will always believe in their way of doing things as will chartists. The market is comprised of both and trying to understand how each group will react is an advantage, not a disadvantage, IMHO. On INTU, I also have been following this stock for 3 years now, and have traded it successfully each year. To me, the best opportunity arises when the stock has steadily sold off after earnings announcements in March and then again in April, as final tax season comes to a close. It typically bottoms in late April and begins a steady climb through the summer until mid August, when it drops again. Print a chart of this puppy for the last 7 years and you too will see this pattern. The company barely makes money and it is rich and has issued stock to keep up its options program. It has been extremely acquisitive and it is trying to move into higher end software where it can charge more for its products. I used to read all 10-Qs and 10-Ks, but it has been a coupled of quarters since I have done so. Having said so, I would also only use it as a trading vehicle. Best regards,

To: Larry S. who wrote (2268)	2/14/2005 2:19:17 PM
From: chowder	Respond to of 13449

>>> i am only look for a run into the low 40s on it. <<< INTU is in a Stage 4 downtrend. The 20 day moving average is below the 50 and a wide separation between the two. In this particular chart set up, you sell the first test into the 50 day moving average, if you hold the stock. Most technicians will short the first test of resistance at the 50. INTU came up to the 50 dma on Friday and pulled back. The 200 dma was just above it which makes it tougher to break through. $41.19 was the high of this recent move and that is the low 40's. You may get another test in a day or two but the law of probability favors taking profits on the first attempt into resistance at the 50, then wait for a pull back and add again if one likes the fundamentals. A lot of professional traders, if they like the fundamentals, would have sold at least 1/3 of their position into the 50, if they owned a long position in a Stage 4 stock. stockcharts.com[h,a]daclyiay[d20041114,20050214][pb50!b200!f][vc60][iut!Lah10,30,5!Lc20]&pref=G I know you know what you are doing, just using your pick as an example for others, on how to make a high probability trade in a Stage 4 stock. dabum