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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: FD JR. who wrote (5004)	1/27/1998 3:03:00 PM
From: Jenna	Respond to of 120523

More 'tips' on playing the 'earnings'..... CTEC holding very strong all day, out of DIGI for 2 1/2 and CELL for 1. Holding MTW and FFD possibly overnight. I'm trying to respond to a couple of e-mail at a time and I hope I can cover most of the questions some of you are asking. I would say I have about 40 possible earnings plays that I have in a watch list this entire week.. Fortunately, I'd say I've played about 1/3 of them at least once before in an earnings season so it's not nearly as intimidating as it might seem. Some of them trend down right away and never come into play. I give preference to the plays that are pending in next 1-2 days but sometimes a play designated for the 30th can be made on the 27th. about 80% of the time I call the company and verify the earnings date, I missed KEG this quarter and NL because I did not verify. Example of a play : Every night I take the 40 plus stocks and check out their T.A. and set up entry points for the next day/days.. I put the heavy preference on those companies whos earnings are coming out the following day either during the day or after the close.. .I had CTEC last week and thought that it was due for a further bounce, so I watched it yesterday .. Last night it closed at the lower range of the day, but the volume was double the normal 30 day average. Since it closed at 11.875. I put in an alert at 12.00 ...I did not think it would hit that quickly but it did in the first hour.. I like the MFI, (Market Facilitation Index), Klinger Oscillator because the price/volume are very important indicators for earnings plays, more so than any other TA indicator. I'm also familiarizing myself with the Linear Regression and the Chande Momentum Oscillator. The Accumulation/Distribution 1 week change, ERG one week change and Price rank one week change indicators... (from Telescan)are invaluable as well but predict changes in 1 week timespan as opposed to overnight or intraday. Some other good indicators that I use are available in " E Search" by Telescan. This is like the " Zacks Earnings Analysis" for companies only in reverse. I can 'ask' for companies that have been upgraded in the past week, put in any amount EPS per share I choose to, any standard deviation and any changes in strong buy/buy/hold/sell status of the company and even and how many upward revisions there were. Since not many companies have had upward revisions they will usually be companies that I most readily recognize (i.e. HD, COST, ABS, AATT) The earnings plays do show very unique characteristics that make them highly preferrable to regular plays which can languish for days/week in tight trading range. I still have a daily watch list and usually get about 1-2 trades off of that. But stocks like TSK, BOL or FBN can languish were it not for earnings that will move them nicely.