To: Jenna who wrote (7001 ) 4/2/1998 9:40:00 PM From: Jenna Read Replies (1) | Respond to of 120523
A word on the earnings plays..I've been getting e-mail about some of the picks for earnings plays, mostly from newcomers to the thread. I have to repeat those are not all "BUYS". They are a "Watch List" for potential movers because of a variety of reasons. One is a positive osmosis of their fundamentals and technicals. Earnings plays, unlike general plays perform differently in OVERBOUGHT situations. First of all they move...They are not laggards, they can't be laggards so you have a definite move in the stock, usually much larger than their ordinary daily trading range. It is quite possible that a pre-run up can actually cause the stock to be downgraded on value (i.e. RXSD) or like in the case of FINL be upgraded to a strong buy and reach further heights. That is why they should be watched. Anyone who has watched and bought BBBY, BBY, FINL,FRAG, RCOT with me has seen the incredible gains an earnings play can make in the days prior to the play and even through the play, and then again in the weeks following the play I usually buy when the company reaches my entry goal and exit after 2 or more points. If the company beats by a couple of cents or more , then the stock gets put into my 'permanent' watch list to be bought when their TECHNICAL charts give me more buy signals in the future. That is the way I trade SAVLY, SAWS, SEBL, BKE, AEOS,TKLC, MODT, LBOR, and a host of other earnings plays. BBY, BBBY, FINL, FRAG and some others were now added to that list. The list I posted for next week are not BUYS but are potential buys. They are poised and ready for action, hopefully to the upside. Some of them might never be valid plays or get into buy territory and some of them might retreat. But some of them will be nice plays. I will still post my general watch list because with the market so positive, I don't want to miss the good trades in other favored sectors. I will watch them both and post when I can the trades I make. Note: Next week is spring break and I will be in the trading room only sporadically. I will continue to post watch lists however. Thanks for the enormous response I've been getting on my request to fill out the feedback forms from the MarketGems web site. Keep them coming. There have been lots of questions of when MarketGems Real-Time Trading room will be open. We are in the process of setting up a large enough data base to accomodate our needs and signing up with a web host that can handle the many requirements we have. We want to present you with a very professional, well-run trading room and will not begin until we are confident we have reached our goal. Meanwhile you are welcome to visit our free #rttrader site. jennamarketgems.com marketgems.com