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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: Jenna who wrote (15298)	9/22/1998 12:15:00 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

HAL.. RON and the sector.. I'm currently in 20 puts of HALVF, In at 1 3/8 looking for 1 7/8 or 2.. RON was really killed today -17%. I think that CDG will probably rebound first since that one was actually upgraded to a buy, although I'm not too excited about it's prospects of an extended run. Probably a couple of hours to a day..

To: Jenna who wrote (15298)	9/23/1998 7:49:00 AM
From: Jenna	Read Replies (3) \| Respond to of 120523

My Intermediate Term Holding Short Term Hold/ and Day/Swing Trades ..are a natural transition from the Weekly Newsletter and Daily Watch Lists I've gotten quite a bit of e-mail asking to explain various criteria for trading and/or holding for various time periods, so I thought I'd organize my strategy into one post.. I have not been trading short term from August 19 until September 4..I was shorting and buying puts at that time. Around the time earnings plays have begun in earnest, I began. I've traded in the way for the last 9 months. INTERMEDIATE PERIOD HOLDS: These are stocks which I hold for a period of 3 months. For me it's a natural transition from the earnings plays. LGTO, PAYX, ACCOB, LZB, VRTS, NTAP INTV, PRGS, HDI,SLR. (Two quarters ago it was NB, BEN, VTSS, HBOC and last quarter it was ELNK, MSPG, etc) This is part of a group from which I take, will take in the future and have taken in the past that come from my 'earnings plays'. I pick them up either a little before the report or just after the first 'retreat' after they beat estimates. PAYX was 41 before its earnings report, and now its 46.875. I enter when they: a) pierced through resistance (I usually indicate resistance levels in my analysis on SI and on the newsletter). b) they have beaten the street with their earning report and/or pierced resistance. These stocks go on to make new highs, they are already 'proven' performers both technically and now with their earnings report fundamentally as well. I hold them until next earnings report, no longer because they can turn around disappoint, have a problem quarter, etc. SHORT TERM HOLD: I rarely hold a month but usually up to two-three weeks. I have just begun doing so around September 4. These are not the same stocks like the above, but rather stocks that usually are below 200 day moving averages (used to be 50 day but today things are different) bouncing off the 200 day moving average, have been beaten down but are still fundamentally strong. Stocks in this category are BOBJY, WLFI, CPU, CKSG, NN, AXNT.... I usually hold them till they go above their resistance level. CPU wasa one I held from September 4 when it was 14 5/8. The resistance of 19 1/4 was pierced and now it closed at 19.94 piercing that level. I will probably take a profit shortly and look for another battered stock to return. I did the same with FORE and NN. These kinds of trades are profitable because I chose companies that are still fundamentally strong and have a good chance to rebound almost completely (not like AFCI, CIEN CDG, etc).. to their former highs. I find these companies more from my watch lists than from the newsletter.. DAYTRADES/SWING TRADES: These are the most profitable for the shortest time scheme. The ones that were 'newly' battered or have an 'anticipatory upswing' due to the impending earnings report. Some of them are 'story stocks', results of upgrades/downgrades, or stocks that are technically poised for a breakout. Usually I sell these after a 'pop' for 5-10%..