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Strategies & Market Trends : Stochastics -- Ignore unavailable to you. Want to Upgrade?

To: Mark who wrote (317)	3/4/1998 9:19:00 AM
From: Wayners	Read Replies (1) \| Respond to of 927

Since TMAR is on an uptrend, stochastics will be very good at getting dips in the uptrend right. It however will be weak in getting tops right without using other tools. Thats the nature stochastics when using them on an uptrend. Have to look at divergences, moving averages slowing down their advance and peaked volatility to get tops right on an uptrend. With SFY, its been on a long downtrend. The 12 day moving average only went positive for the first time yesterday. The 5 day stochastics are at 90. Volatility is not quite peaked, so I'd say its going to go higher for at least a day or two. Take profits when you see the downward hook in stochastics and volatility peaked at the same time. Then see what the price and volume do. Does the price return to the moving average on low volume and low volatility or does the price go much lower? I always have doubts in the durability of initial rallies like this. If price only dips and the uptrend remains intact--you buy back in at a lower price than you just sold at. If not--you're out with your profits.