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Strategies & Market Trends : 99 RS stocks--WATCH THEM FLY HIGHER AND HIGHER -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (780)	3/20/1998 10:16:00 AM
From: Lyn Benson	Read Replies (1) \| Respond to of 836

Yes, A.K.(or anyone!)in keeping with Tom's question, for example, how would you interpret GECM, for example, with EPS/RS at 89/93 or HNV, at 48/99 (these are two stocks I am familiar with). Your thoughts are greatly appreciated!

To: Tom Trader who wrote (780)	3/20/1998 10:35:00 AM
From: The Jedi	Respond to of 836

TT I have been posting a list of high RS stocks here for a while. I have not back tested these, but I have seen that stocks that are of RS 90 or up move on to go to RS 99. When a stock reaches to RS 99 it will stay for some time and then move down. RS starts to move down and the stock eventually follows down. It may at some point stop falling and then keep going on. The best method is to watch a stock moving from RS 90 up. These are for short term or position trades. As for back testing it will only be statistically valid in a statistical paradigm. Unless a strategy can be broken down into a statistical model back testing has no meaning. I don't know how to do this for the RS model. And I would not define validity as having reached a price target or advancing in a direction. It is after the fact analysis, too much bias there. To me retrospective analysis has no meaning. Also back testing does not assure that forward going is going to achieve the same result. I just use the KISS principle. Tape reading is one strategy that has worked and can't be back tested (at least that is what I think) Interesting observation is that from watching this list one can see that sector rotation is going on. 6 months back the oils dominated the group, now we hardly see them. Another observation as most traders are looking for stocks that are moving up and fast this list provides a base to do ones homework for position trading, as most traders are looking for these stocks. I don't know about investing from these. I am not an investor. Kiri