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

To: Chris who wrote (13557)	8/1/1998 2:03:00 PM
From: Robert Graham	Read Replies (2) \| Respond to of 42787

A few notes on picks for next week: First, I would not play stocks that have not already been performing through this period of the market. There have been a few up days since the last big sell off. If this stock did not come alive or continue performing during those days, then why should it be any different next week, assuming the market remains basically the same? Holding in a consolidation patter is not good enough. Now if the move up this week starts a mini-rally, then those stocks in a holding pattern with the best potential for a turnaround may be worth considering. As you can see, I think allot of what happens will be market directed since many are concerned about a further drop in the market. I would also try to stick with the industries that have been performing recently: software, Internet, and drugs. The industry groups that were leading earlier like the financials and retailers have not been the performers of late. Perhaps they will have their time in the spotlight again if the move up develops into a rally which develops some strength. The the market may get the feeling that everything is returning back to normal and move back into the industries that were performing before this current period in the market. For the stocks that are being played strictly due to short term momentum considerations, the industry it is in would not be important, even though preference should be given to the industries that are currently in favor by the market. In this category I would go with the stocks that have their bounce being driven by news. However, I would be very careful about established resistance levels. Once the stock meets its resistance, and the stock shows it is starting to back off from its resistance, then I would sell. If the market is neutral to down, I would be more quick to sell and take profits. If the market is moving up, perhaps it would be worth the risk to hold on to see more definite indications of a pull back develop before selling. This is a judgement call thatneeds to be based on market experience and the reading of the tape. But I want to reminds everyone that this market needs to be approached with caution and with the willingness to take profits. Any thoughts? Bob Graham

To: Chris who wrote (13557)	8/1/1998 3:25:00 PM
From: Sonki	Read Replies (1) \| Respond to of 42787

chris, what variables are used to come w. trend stren? i assume it's change in price vs. differnece in volume away from it's norm. How can one use trend strenght? i understand oversold at 40 and overbot 90. thx for 10day data. oh. btw i read the businessweek article. the only scary thing about the article is that now it's in the Business week, i.e. in hands of gen. public. who may act on it? If past could tell us the future. what a wonderful world this would be?