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Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security -- Ignore unavailable to you. Want to Upgrade?


To: Jane Hafker who wrote (1227)7/12/1998 12:01:00 PM
From: John S. Baker  Respond to of 2534
 
Glad you liked the site. Spend ("invest") some time in learning to work it, and then run the P-to-V and MFI on all your holdings. You'll have a *much* clearer perspective on where the market is for each of them.


As a matter of personal practice, I prefer stocks in which the MFI is going up faster than the share price. This tends to give me a *free* second opinion, as I piggy back on the so-called smart money which is moving into the stock. The MFI chart can also be used to interpret price pull-backs. If the price drops a bit, but the MFI stays steady, it suggests that the net selling is primarily retail based and that "the big guys" are hanging tough, which is also called a "buying opportunity". When they hang tough, I am more likely to do so also. But if the big guys are bailing out, causing an MFI drop, I usually look for an opportunity to get out myself, or at least I watch the stock more carefully.


Happy Due Diligence.


JSB.