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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Richard who wrote (7116)	11/28/1997 12:15:00 PM
From: Robert Graham	Respond to of 12039

I do not go by the tradtional sense of the stock being "overvalued" or "undervalued". Now if I was a long term investor, perhaps PEs and PEGs will help me in my valuation of the stock. However, for short term trades, I find the "value" of a stock is to be found in its chart. For instance, if the stock price is substantially above its 50 day MA, I would think this stock is possibly "overvalued" in a technical sense. Add to this other technical factors such as evidence of a net distribution of the stock as indicated through money flow indicators or tape action of the stock, then I would definitely avoid that stock. But in short term trading, if the stock was technically sound, I would be willing to move into a stock with a PE of greater than 100. Bob Graham