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Strategies & Market Trends : STOCKS WITH ATTITUDE TEAM - FA/TA AND EVERYTHING ELSE -- Ignore unavailable to you. Want to Upgrade?

To: Cary C who wrote (947)	12/30/1997 9:06:00 AM
From: Dave H	Read Replies (2) \| Respond to of 2377

Cary, It's my belief that TA usually leads the FA, since most of the real good stuff is usually only known by insiders, and that shows up in the TA if you know what to look for. Of course, you could also say the same thing about FA, but I think it's much harder to go on that since there's so much possibility that you don't know everything. AIRM -- I don't think we'd miss the boat on a true turnaroundby waiting for the key downtrending lines to be broken on strong volume; you might miss out on some quick gains that led up to that breakout, but then you have to consider your own risk/reward picture and what you are comfortable with. AIRM right now is still in a downtrend; it will go up on some days as people who see current prices as "the lowest it will go" or a just a good price; single positive news releases usually give the stock an up day, but what you want to see is some sustained buying and moneyflow into the stock. The way I see it also is that a company can have the best fundamentals in the world, but the stock could still go nowhere if traders/investors don't put there money into it. TA shows you where the money goes, and gives you the entire history of the street's valuation of this company. Now I wouldn't base my investing on just TA either; I'd like to see some strong fundamentals behind the TA; but I wouldn't feel comfortable when the situation is the other way around. As for AIRM, I see the major downtrending line from connecting the highs of 9/29 & 11/14; this line is at about 3 3/4 right now, much above the current price of the stock. That's because starting 11/14 AIRM has been in an accelerated downtrend that seems to have bottomed out on 12/16 and since then 2.88 has been forming as a good support area. However, personally, I'd wait on AIRM until it breaks out of the 9/29-11/14 downtrend. If it does this, it's got a lot of potential ahead of it since it would probably be a MIMBO and thus could return to it's prior high of over 14 in the end of 1993. AIRM is one to watch, definitely, but as far as the TA goes it's not out of the woods yet. It will be interesting to see if the FA does start leading the TA. I'd guess though that you will see the TA give you an early indication of the breakout if/when it happens... dave