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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: Charles Bowen who wrote (10711)	6/26/1998 11:49:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

Charles, It's hard to answer such a question quickly and thoroughly without qualifying it with more information. I enter when my daily confirming the trend. I also like to keep the weekly chart at the chart oscillator goes into buy range, followed by volume oscillator same time. I stay in as long as it keeps trending up. My method is not looking at intricate chart patterns like heads and shoulders, although I like doing triangles with the volume charts at times. I use moving averages and trend lines, looking for support and resistance points. . I keep the indicator I use for daytrading fairly simple. I find most useful are the Relative Strength Indicator (RSI), slow stochastics, the Directional Movement Indicator (DMI) ADX, the Commodity Channel Indicator (CCI) (for confirmation of the trend), Moving Average Convergence/Divergence (MACD), either OBV, MFI, Klinger Oscillator for volume. I look at daily 5-15 minute charts and weekly charts. By the time I'm ready to pluck off the stock, I've studied the weekly charts very well. So I can go in quicker because I've already done my homework beforehand. I don't like momentum in a vacuum. I have the fundamentals on the stock, price patterns, possible news and future outlook, analyst upgrades, whatever will move the price beyond technicals. Stocks that came into buy range today were CDO,FORMF,TOS,AVEI,BKB,WAMU,RMBS and the latest: PDS For the weekly charts I like MACD Histogram, but you can use any "trend" indicators that you want, DDI with ADX, moving averages. If you have a weekly chart that is up and the daily chart is down you can prepare for a possible renewal of the strong former trend and wait to get back in. For the daily charts I like dependable oscillators. You can use any oscillators you like, I like the dependable stochastics, RSI or Williams %R. You set up your parameters for the stochastic (for short termers like me a nice slow 5-tick stochastic smoothed with a 3 day) and when stochastic rises over it's say 30 line it's a buy signal. But that should also include what comes next: VOLUME Volume is probably one of strong indicators I like to get into a stock and determine how long I'll stay in it. IF your trend indicator is moving up, your oscillator is moving up through your stochastic into "buy" territory you use volume to confirm this new trend. I like very high volume. If volume gets weak chances us the stock will start to fizzle. here's where divergence (not for now) come in. Volume indicators I like the best are the Klinger Oscillator or OBV but any one will do the trick. FUNDAMENTAL/TECHNICAL ANALYSIS Remember that BEFORE the stock comes on the watch list it has already had a volume increase the previous trading day of 150% over the 30 day moving average. That is why it is 'poised' in the first place. The volume oscillator would show a continuation of yesterday's trend. Like RMBS on Tuesday following it's surge on Monday. I've also screened the stock and it's passed pretty stringent technical and less stringent but still "weighted" fundamental analysis. It is very important to be familiar with the stock, it's patterns and its short/mid term outlook (at least as much as possible). It helps when you trade the same couple of hundred of stocks over and over again. If you are unsure of where to enter if your stock that has been rallying earlier seems to be fizzling, You can put in a 'buy' order above the highest price the stock has reached so far that day. If it goes back up you will be executed where you put in your 'buy' order.. that's call a trailing buy stop, once you get in then put in a "stop loss' usually 2-3 ticks below the low of the day. I use pretty wide stop losses because I am usually in a trade for at least 1 hour to 6 hours and up to 5 days.

To: Charles Bowen who wrote (10711)	6/26/1998 12:56:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

CDO..PWAV? I chose to enter CDO this morning instead of PWAV when they both gave pretty identical results of one of my scans. Both came in the top 95% percentile for stocks screened for RANK change in the last 7 days: a)ERG b)Accumulation/Distribution c)Group d)Price I expected to get into PWAV, but CDO's morning chart, consistent riding on the higher channel and consistant piercing resistance bands made it a more compelling play. Also the price was already above the 17 3/4 resistance which I liked. In addition I had some fears the tech sector was not going to continue it's strong uptrend. I'm still bullish on PWAV however, but I don't think I'll enter it today.