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Strategies & Market Trends : Charts for Quick CASH $$$ -- Ignore unavailable to you. Want to Upgrade?

To: Carlton G Glenn who wrote (7094)	4/1/1998 10:15:00 PM
From: HeyRainier	Read Replies (2) \| Respond to of 9262

[ OMGA vs. HDSN ] Carl, It appears that HDSN's cyclical pattern in its chart makes this one quite a visually appealing play when one looks at trading it via the stochastics indicator. We had a crossover today on relatively interesting volume (but in absolute terms, not that wonderful), which had been successful in the recent past in determining near term upward price movement. Intermediate term momentum has troughed, and the down trend line associated with such a time period was broken late last year, setting the stage for the period of consolidation the stock is now experiencing. Also, with today's movement, the 89 dma was broken through (but it certainly wasn't the first time). What I find unattractive about it is its relatively larger spread (3/16ths vs. 1/16th), which makes this a bit harder to make money from if the price rises. Maybe it doesn't trade like this all the time, but today's the first time I've looked at its spread. Also, the average volume shows that this is much less liquid than OMGA. The 30 day average is at the high 19,000 range, while for OMGA the average volume is about 96,000, making it a better trader (which could explain its tighter spread). For OMGA, the chart is also easier to read: the trends are more clearly defined, and a very clear reversal pattern is currently in formation. This one should be easily recognized by the lurkers on the thread. The chart has rising bottoms that are converging towards the flat overhead resistance level at $4 3/8...an Ascending Triangle. The 30 dma is above the 50 dma; trend-following indicators and Omega Research proprietary indicators (Larry Williams and Expert Analyst) have for the first time in the stock's trading history both voted for bullish outlooks based on the chart's trend, trend quality, etc. To add to that, it looks like a Bollinger Squeeze is getting ready to make this one pop. No such luck with HDSN. Also, RSI has crawled out of the below-50 level for the RSI and is now sitting comfortably above it (the technical analyst from CNBC compares a 50-level crossover to a momentum crossover from the 0 bar--a buy signal). I just find that more good things tend to happen to stock prices when the RSI is sitting above the 50 level. As in HDSN's case, the intermediate term downtrend has been broken, and momentum has troughed, leaving the possibility for advance a more likely outcome. It might also might try and make a grab for that 89 dma, which would take it above the flat resistance level of the A.T..The stock could realistically go to $5, while the upside target for HDSN is only $4.80. As for Omega Research (OMGA), it's nice to know that the software that once recommended a Sell on its own shares all the way down from the first month's trading, now is decidedly becoming more bullish, and is voting the opposite. Also, a Motley Fool article that bashes on the stock even begrudgingly admits that the stock's current prospects warrant a swing at the issue: fnews.yahoo.com I wish I could take the time to look more closely at HDSN's fundamentals, but time constraints prevent me from doing so. But I can tell you this: earnings visibility is lacking, and may still continue to be in a downward spiral. From an FA/TA standpoint, I would opt for OMGA. Regards, Rainier