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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Gersh Avery who wrote (20860)6/23/1998 1:35:00 PM
From: James F. Hopkins  Read Replies (1) | Respond to of 94695
 
I try to let the market tell me, what I look for is divergence,
a stock that in and amongst it's peers it bucks the tide..
unless there is news causing it to buck that tide it will swing
and it will also swing after the news gets cold if it's peers
have all gone the other way.
Look at the herd ( sector ) and pick off the ones
that get to far away from the herd.
It's the law of the jungle, you will miss some , but you will
do better than charging at the herd.
Like the TA on a stock may say it's going up..but you get an
extra edge if the sector is also going up, and lose it if that
sector is crashing. With oun an extra edge you can't make it
because the market is not a 50/50 game. There are always more
losers in the long run than winners because the spread,
and the cost of trading puts an overhead on the market.
Jim