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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (7205)	3/21/1998 9:34:00 PM
From: Chris	Respond to of 42787

some thoughts from myself (not as long as yours bob g.) <gg>: i think within this past few weeks, the idea of sector rotation really hit home. as you speak of "what the institutions are buying?", it really dawns on you to think "sector, sector, sector". as a general view, i see multiple approaches to trading (with TA).. jenna uses the earnings role where she looks at improving earning estimates and along with TA, rides that aspect of the momentum of the stock. Judy, is the methodologdy that im striving for. While, i may not understand the "fundamentals" behind the sector transition, i'm relying on the use of weekly sector index charts to show "where the money is heading to".. Finally, with TA, i pinpoint my entry/exits. As i reflect, i think this sector-TA approach has worked well. Noting that techs would be under pressure from Asian worries (non-TA approach), I looked at Index charts of major sectors. This is where CHIPS CHARTS really turned my thinking in seeing the mkts as sectors. At the time, i saw that banking and oils were ready to move. With my limited knowledge in oils, I concentrated on the banking and started looking at good picks within the banking group. Coincidently, the Chartists newsletter had some banking stocks within it's portfolio. I also used the TELESCAN website to look at the fundamental rankings of each company - noting which company had great value/ or growth rankings. As i said before, 10% profit is 10% profit -- no matter which sector you're playing. why choose the risky tech sector ,when you can get your 10% in a less risky banking sector? just my thoughts.. any comments ? <g>

To: Robert Graham who wrote (7205)	3/21/1998 9:49:00 PM
From: Chris	Respond to of 42787

a note on the tech rally: if you look at the tech sector (let's look at the SOX index chart) quote.yahoo.com you notice that there was the big rally from early jan 1998 to late feb 1998.. that was the time to get in and trade the techs.. as i roamed across the SI threads, i noticed that many people (who missed the tech rally) wanted to buy techs/add more position after the feb 1998.. they were waiting for the pullback (which came) and expected another tech surge. if you note, in the month of march 1998, there was a brief uprally and then it died. (precise date would be 3/10/98 to 3/17/98).. it was at the time, that a check on the weekly chart that would tell you that a cautious approach should be applied. it should also be noted that the SOX 50 day ema was failed to be broken on the 2nd tech rally attempt. what im trying to say is this: 1) timing is crucial. sometimes, you cannot wait for the 2nd rally (which may never come) 2) but do know when it's TOO LATE to enter. that is key - knowing when the BUY WINDOW is still open or closed. i think #1 is very important. you must keep looking for the CHANGE IN TREND. and you will be the sole person going against the mkt.. sole person going against the crowd.. but you stick to your charts and carry through. that is why TA is so objective (IMO). you can listen to XYZ all you want, but a brief look at the chart will tell you whether XYZ's statemetns are valid or not.