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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Vol who wrote (7830)	7/5/1998 11:59:00 PM
From: XPLAY	Respond to of 14162

Herm, Lurker Here, Sorry for the interruption. Volunteer, I've followed your posts for a long time and am surprised to hear you ask this question. My answer (from successful experience). 1. Use IBD ##/##. 70/70 for younger people and 95/95 for older people. This takes care of all fundamentals. (I am not affiliated with IBD in any way) I love William J. O'neil. 2. Use TA (Technical Analysis). RSI and Stochastics. Bollinger Bands work along with this. (Overbought/Oversold). If you're not familiar with TA, learn it! 3. Look (Hard) at securitytrader.com . (Sector rotation and Market Timing) He's Good. Herm may have different opinions. But, this is mine. Good Investing. Tom Wells

To: Vol who wrote (7830)	7/6/1998 12:53:00 PM
From: Zach E.	Read Replies (1) \| Respond to of 14162

Now if someone could just tell me how to avoid the next VVUS or APM Hey Vol, Good to see you on the thread again. I can't say with any degree of certainty how to avoid the next lousy stock. However, there are a few things to watch out for. One is short interest. I realize that this is a contrarian indicator to some, but shorts do their homework so this should definitely be a red flag. That short-covering rally that you're looking for may not be for a long time. An extension of the above is just to try to figure out the "bear case" for your potential stock. If you can't think of one, you're not looking hard enough. You can sometimes get this from the threads on SI, and sometimes from the "Risks" section of company filings. In terms of valuation, the current market doesn't care too much about it. But, If your company has a low Price/Book (especially if a lot of the Book is cash), and/or Price/Sales, you are generally more insulated from a big fall than with stocks that trade at high sales and book multiples. Earnings are a lot more suspect, as they are usually more volatile and easier to fake than sales. Relative Strength (as much as I wish this weren't true) also seems to be an important indicator. O'Shaughnessy's "What works on Wall Street" covers these aspects in much more detail. Good luck, Zach