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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (495)	8/22/1998 11:28:00 AM
From: Jon Tara	Read Replies (1) \| Respond to of 7247

Here's the way this sector normally plays - initial surge on an "event" (1-2 days), followed by a correction. If the "event" was major (I'd judge this one to be the Big Kahuna...) they come back and trade up for a couple of weeks, with lots of volatility as they jerk around in response to news. Typically, the initial surge is just the beginning, in percentage terms. You want to hold these stocks over weekends, because the press spins and spins and spins over the weekend, resulting in Mondays normally being up. Despite this, Friday selloffs are common. The sector will be "Kernaned" multiple times. You want to be a buyer on the "teaser" before CNBC goes to a commercial, and a seller 5-10 mintues after the story. Then, over a period of months, you will see a softening of the price and then a rebound followed by slow, steady gains as a stream of news reveals new mandates, product sales, and then you see it in the bottom line. 6-9 months later the cycle is over, and these stocks typically go back to sleep. Or not, because the only thing consistent about the market's behaviour is it's inconsistency. :)