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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 (10079)	6/6/1998 5:06:00 PM
From: LastShadow	Respond to of 120523

Okay. Everyone has let off a little steam/ego/anger/whatever. Including me. Lets get back to the business at hand and keep the personal issues in the private messages, please. lastshadow

To: Jenna who wrote (10079)	6/6/1998 7:42:00 PM
From: Jenna	Respond to of 120523

The Trading Range for Stocks: When I post a: "watch list" or post an "earnings play" list, one of the most important technical criteria to determine if there is a potential breakout is the trading spread. I look if the stock is showing an expansion of the trading range before earnings come out or after a particulary good day for a stock that has been consolidating before that. Today I've come across an article in Investor's Business Daily that espouses the same theory although they are talking about investing and not necessarily trading criteria. They even mentioned EMC and RCM technologies, both of which I've had as either earnings plays or general plays in the last few weeks. Before an 'earnings play' actually is playable it should increase it's trading spread throughout the day and this coupled with increased (150%) volume can show that this stock is in heavy accumulation and would be tradeable, at least until the signs diminish or 'fade' and the traders lose interest. Of course this trading range is relative to a stock and a stock with a spread of .5 daily that increases to .75 or more follows the criteria. I've seen it with such plays as FTIC,WLT and JOB as well as stocks such as WAXS,LBOR,SAVLY and TKLC. So when I check the stocks the night before a watchlist, one of the criteria is 85% of the high of the trading range, trading range 50% wider than the 30 day average and then, of course, volume at 150% more than 30-50 day average volume. Usually stocks that breakout like TJX, DELL or ABTX follow these criteria. If you ever purchase a scanning software, be sure to find one that has this indicator available, its invaluable.. especially together with high relative strength and fundmental rank.