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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: TWICK who wrote (17137)	10/17/1998 10:23:00 PM
From: Bogeey	Read Replies (1) \| Respond to of 120523

Just a thought to share with the group. This weekend I am holding aspt ( got in at 12 late in the day ) hoping for a rebound on Monday, I don't think that the 32% loss is deserving of the news. Stock was a strong buy at 18 with a 12 month target of 32 or something. Friday, the stock downgraded to "buy" with a 12 month target of 22. Now the stock is at 12. LOL>>>I see a upgrade coming. Anyway, my point is that I have always worked these one day losers hard for a quick profit the following day or so, as I am sure we all do. However, I particularly study this this scenario through some heavy tracking of stocks that tank and their rebound the following 2 weeks. I also track stock plays ( why we buy or sell at any given time: earnings, position, momentum, defense, hedge, etc.) What I have found is that the environment we are in now is not condusive to stocks rebounding quickly and strongly after a huge selloff. The reason is twofold primarily. 1) This is earning season and with the market emotionally wounded yet optomistic, earnings plays are preferred and turnarounds are not. Why take that chance on a comeback when you have so many other great opportunities. 2) The numbers RULE! obviously we have seen that this past week, and if you miss the numbers, you are outta here until earnings season is over and the focus shifts back to it's normal methods of valuation. Stocks grow in price and lose value based on supply and demand. Trends in picking stocks are based on the same thing. One additional question to ask yourself when making any kind of play on a stock is "Is this type of trade in demand right now or not?" Obviously earnings plays are.. Obviosly I see aspt as an exception to my rule, if you will, but as I discussed this with someone else on another thread today, I thougt I would pass these thoughts on to the group here. Hope everyone has a great week!