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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Backfill who wrote (13325)	7/29/1998 3:32:00 AM
From: Robert Graham	Respond to of 42787

The "wrong" people were in control of LU towards the end of its rally. That is why it has behaved the way it did. If you want to trade this stock based on balance sheet, future business, and good story, wait for the people who think like you to start trading this stock. Otherwise, if you still want to trade LU, beware that "value" and future business may only have at most only a tenuous connection to the price action of this stock. The "good story" can still help here. Trade LU strictly by the technicals and the tape action of the stock. Watch the news on this stock closely in order to gauge the stocks response to the news which is a measure that can tell you something about where traders are at with the stock. Also you need to understand how stock like this trades when this type of speculator is in control of the price action on this stock. You need to be following this stock very closely. Always play off of support. Have strict exit rules in hand. LU is not the LU it once was before this last rally. Actually the mix of traders involved in this stock started to change as early as April of this year with perhaps another change leading up to the end of this rally. You need to be able to recognize this. This is where people get burned by not being able to see when the market or a particular stock has changed its character. People as traders give character to the stock and determine how it trades and what the stock responds to. Balance sheets never do. Earnings never do. The only time balance sheets and earnings matter is when the people who trade the stock give those items importance in their decision making. If anyone is to learn just one concept about stocks and the stock market, this would be the most important concept to understand. Bob Graham