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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (9960)	6/4/1998 1:03:00 AM
From: Jenna	Respond to of 120523

Pre-Open Trading, the Hazards I've gotten some e-mail about pre-market trading. I just wanted to clarify that I SELDOM trade before the market opens. I watch the pre-market to get an indication of investor sentiment on the stocks I'm watching. But in the last year or so I've become a bit more experienced in the kind of stocks that lend themselves to profitable trades in pre-market buys. They are three: 1) fast moving stock like the internet stocks and oil service sector. You can usually get 1 or more points on and early morning upswing in these two sectors. 2) When a second tier or mid/small cap company reports better than expected earnings. Some of them will not gap up that much as a DELL or ERTS but rather increase at a slow but steady pace. BKE, AEOS and VTS were some examples. 3) Upgrades... SPLN was upgraded today before the open but it did gap up quite a bit.. but in a large number of cases an upgraded stock will move up more slowly. Sometimes if its a stock like CYMI, SMOD etc, I will pick it up after an upgrade and even if it gaps up 1- 1 1/2 points because I think there is more potential there (PWAV is such and example) I'm pretty familiar with price patterns of the stocks I buy in pre-market trading and OZEMY is one stock as well as some other second tier internet stocks that I've been trading of late. I've missed a few times, but I'm starting to improve on my timing. I would not recommend that kind of trading to everyone and there are usually other picks that will become BUYS after the open, so you can trade those instead.