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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: James Young who wrote (4561)	1/6/1998 2:55:00 AM
From: Jenna	Read Replies (2) \| Respond to of 120523

EFII...On December 29, the MACD crossed above it's signal line and EFII's price went from a low of 15.625 to a high of 17.750 on INCREASED volume. Today volume decreased and prices were stagnant so I would have sold at this point. EFII has now actually reached an overbought situation with a stochastic of over 80. But even though EFII is still trading below it's 50, 100 and 200 day average, now it is above it's seven day average and approaching its 20 day moving average. I think after a 'rest' EFII will probably take off again. At this point the 'dead cat bounce' is actually over. If I understand the theory (I don't purport to follow it) it should bounce immediately after the precipitious fall to be considered 'dead cat bounce'.. EFII went down another point after the initial drop. If NSCP gaps up tomorrow that would mean it underwent a 'dead cat bounce' but the technical outlook is still extremely unstable as you aren't seeing a bottoming out as yet. For those looking to get in intermediate term I would wait for a real trend reversal and not these so-called fake 'dead cat bounces'.

To: James Young who wrote (4561)	1/6/1998 3:28:00 AM
From: Jenna	Read Replies (3) \| Respond to of 120523

A saga in Oil Service sector.....Ever see a Road Runner cartoon? You'll notice Wiley Coyote never can get the road runner no matter how artful his wiles. Same with daytrading the oil sector. It's an artform. Scene 1 Maria Barteloma is energized and talking of great fundamentals and terrific earnings coming out of the drillers. By this time all fingers are on the triggers to buy these juicy morsels of oily profit. DONT.....NEVER buy an oil drilling stock until after the market has been open for 1/2 hour. If it's a 'genuine' rally, it will still be there in 1/2 hour, but if's it's just another 'fake-out' you'll be stuck buying high and selling low. I was going to buy EVI after it opened 49 7/8...4 minutes later it was already 50 3/4.. rally? NO..fakeout.. I waited 10 minutes and was tempted to put in an order at 51..knowing EVI can easily do 3 or 4 points in a day. I wait till 10:00 and discipline conquers temptation.. AT exactly 9:47 EVI goes to 50 3/8.. not a good sign. AT 10:00 EVI is 49 5/8... very, bad sign. SO I change into my combat fatigues and decide to 'fight this one out' until EVI finishes tanking and THEN I buy. Well at 10:54 EVI was 46 7/8 almost 4 points off it's high for the day... so now I decide enough is enough...I place a buy limit for EVI at 46 1/2 and wait it out. My order to buy gets filled at 11:00 and I'm a happy camper....I put in a sell order at 47 3/4 figuring that's enough and I wait.. and wait...and I'm still waiting at 3:23 a.m. but I guess since EVI closed at 47 1/8 I'll continue my vigil tomorrow morning... moral: If you like getting 2-3 point profit on a daytrade and don't mind staring at the computer screen all day, then EVI and it's peers are for you... but wouldn't it be easier to wait until 10:00 make sure the rally is in place buy then and put a sell order in for 1-2 points above your buy IMMEDIATELY after your buy comes through?... Remember the good old days when you could take these stocks home with you for a week or so...? (sigh!)