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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Lachesis Atropos who wrote (16371)	6/4/1998 7:22:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 68426

Hi, thought we'd lost you to a mogul! To some of your points... Traders want volatility.. therefore sectors which make big moves get attention. Oil drillers, tech stocks, bio techs come to mind. Second in line are sectors that run hot and cold with consumers. Retail and transports come to mind. The price area is important for trading options. If one is for example using 10 thousand... one can go for consistent 10% moves in stocks that trade $ 4- 9.00 using occasional margin when a "move" begins after entering a position in anticipation of. That same amount of money trading BMY at 100 will not have as much %age clout.. however buying puts and calls can have a dramatic (though more risky) effect. There seem to be areas that stocks split at. The 100 mark for many companies though many split at less or more depending on managements desire to flatten perceived volatility and/or to attract a lower price buyer. Playing for splits is illogical but fashionable. Illogical because no value is added to the company, fashionable because the public perceives a split as confidence and jumps in. Reverse splits are seen as negative usually. I like your perception that in bull markets sectors are more cohesive than in bear markets. Perhaps the weak fall behind quickly... though as a bull phase begins the strongest seem to accelerate first and fastest.