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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth R Miller who wrote (15186)	9/21/1998 1:12:00 AM
From: Jenna	Read Replies (4) \| Respond to of 120523

Suggestion: I've been getting e-mail this weekend on particular stocks that posters like. I would think that stocks like MUEI, MU,SEG, PHM, CTX, MWD, CMGI would probably have their most powerful moves 1-2 days before earnings. CMGI is looking for (0.68) instead of (0.26)reporting on Thursday. Since its beta is 2.23 you are going to have wild gyrations Monday-Thursday. Also if LEH is trading down on Wednesday (day it's earnings are out) then you would have a good indication of what MWD will be doing on Thursday without picking them both up on Monday. The small stocks should be followed even more carefully as trading them has been quite excellent with 13-20% on some trades. Remember the watch lists low-priced stocks have had more than 15 big blocks going through meaning that is where the big money is flowing. That is why they make those gains. Another thing you are going to have to rethink some trading habits you've grown used to. You can't be holding positions over 2-5 days with this market climate. Go where the most beaten stocks are, the bottom quarter. Look at REXI, PSQL , enter a position and exit it with a fair profit, holding overnight was okay with REXI, but I didn't do it. Don't ever buy a stock because its going down and you expect it to reverse. It might have wanted to reverse, but a bad market climate that day will have other plans for your stock. I have trader friends that picked up some MER and MWD after its first large fall, thinking they had bottomed. I was still buying puts on those and CCI.. I think they had one good day before it fell a total of 20%. Carefully watch our street beaters for the second/third day after earnings. They usually come back to make even stronger gains (PAYX,CCL,PRGS,SLR,INTV..) Some like MLHR that didn't have an appreciable gain as yet will pop any day for 6-10%. It's done that before.