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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (4389)	12/18/1997 10:59:00 PM
From: LastShadow	Respond to of 120523

Watch List 12/19: SYMBOL CLOSE CHANGE CHANGE %VOL VS AVG (50) FTPS 1.781 0.219 14.00% 335.65% CU 32.125 0.750 2.39% 233.78% AMMB 24.312 0.187 0.78% 102.00% INDV 3.500 0.00% 33.74% SMMT 10.000 0.00% 45.26% SFA 16.500 -2.500 (13.16%)518.11% Still long on CU, sold TCOMA and MDYN AMMB is struggling to recover, but not showing strength yet. lastshadow

To: Jenna who wrote (4389)	12/18/1997 11:07:00 PM
From: LastShadow	Respond to of 120523

Responses: Tax selling is not over. In fact, it hasn't even started yet. ADIC - It has a large asian exposure in that most of the components are made there, although assembled in a variety of places. however, with the devaluation of the yen and other rim currencies, that should actually help them with supplier costs. In a month that won't be the case but for a short term hold it does not look threatening. BORL - this one could go as low as the low 7's, so I would hold off on it. lastshadow

To: Jenna who wrote (4389)	12/18/1997 11:09:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 120523

Pre-Holiday Effect: There are 9 holidays for which the exchanges traditionally close trading. Research based on 600 holiday closings since 1928, and an analysis of the S&P 500 Index daily price action has determined a common pattern for the two days preceeding the holiday. No one knows why this occurs, but we suspect that traders are offloading stocks so as not to get caught with bad news that might occur over the long weekends. In general, stocks prices have increased during and after those two days, and the strategy would be to buy just prior to the two days and sell immediately after. In fact, buying and selling just before and after the Holidays and the month-end periods is about 12,000% more profitable over the last 50 years than just holding the S&P 500 Index. The Christmas Holiday is slightly different, however, in that the better day to go long is the 23rd of December, as market prices tend to drop on that day. The historical growth is listed below: Christmas Dec 23: -7.1% Dec 24: +15.2% New Years Dec 30: +31.1% Dec 31: +19.6% In addition, we have the January Effect closing in on us. In a discussion I had with DollrBill and AlienTech recently in the rttrader chat room, we discussed some of that and the first quarter growth sectors. Before year end I will post my thoughts on that and the quarterly look at Mutual Funds. lastshadow

To: Jenna who wrote (4389)	12/18/1997 11:20:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 120523

One Last Thought: Fidelity and a few other big houses institued a policy of "Fair Value Pricing" of their mutual funds during the October market drop. The reason they did this was to prevent market timers from racking up profits at the long term expense of their shareholders. What would happen is that anyone with foreknowledge of what the, say asian markets were doing, could load up on the mutual funds and the n sell after the recovery. This worked well when the share prices were based on a composite of the funds stock prices. However, since that raised havoc with the long term fund holders, and to prevent this sort of scalping due to market tanking, some funds are looking for a way to prevent short term trading. Not very sporting if you ask me, but understandable (Funds do not have to price their shares on any measurable market value - see Buffet's Hathaway fund...). At any rate, what most funds will be doing now is some form of share pricing based on what they believe is the fair market value rather than the stock collection's trading prices. this will be better for the long term consumer and end up causing the market timers to possibly pay more for the stock andget less when they sell if if they get caught doing it on the day a fund decided to implement this method - which they could at any time. This will make it harder to get a true value of the fund at any given day (rather pointless anyway in most cases), but should make funds that use this method less volatile - something the bulk of the investors will like. I am not sure what affect it will have on the Modified Value Averaging method I use, but will run some simulations to find out - not much I suspect. lastshadow