Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (4770)	10/28/1998 1:51:00 PM
From: The Ox	Read Replies (3) \| Respond to of 14427

Here's a tidbit from ClearStation: kensey' has recommended INTV (Long) 'kensey' said: Buying the Record Price Breakout in Intervoice Inc (INTV). A Record Price Breakout is a 52 week price high where prior 52-week record price high does not exist within the last month. So it marks a fresh entry into new turf. Buying breakouts isn't easy. The natural tendency of a stock when it cracks fresh new turf is for it to fade back into the channel (or range of trade) from which it came. That superball has to be launched especially hard to keep the upward trajectory going. There is a gravity factor to overcome as the knee jerk reaction by traders is to sell it and bank on a return to normalcy. In fact, a return to normalcy happens more often that not. This then tends to wash out weaker players who bought the price breakout and then get skittish and loose confidence when the stock fades. I get around this by planning on the fade and then buying it. Price breakouts are momentum plays. The most important thing to look at is the volume that is powering the move. In the case of INTV, blue volume bars stack the deck of the volume indicator graph well enough to convince that bull price action is controlling the action and that sum consensus of those participants that are vesting is a bullish one. The way I play a breakout is to salvo in with a 1/2 times weight. If my target is a $10,000 dollar vest, I'll throw half at it when establishing the initial position. That way, if there is a fade, I'm not in the reactive mode of selling and feeling like crap, but in in a mode of objectivity in determining whether the fade was stronger than the price rise that proceeded it. If the fade alarms me, I can bail and the loss isn't bad. If the fade does not alarm me, I can pick up more shares. INTV's fade point is approximately 24 dollars a share. This price level represented resistance before the move in that the stock banged against this level in July, September, and here in October before the break out. This line is drawn in. kensey See the annotated graph of this recommendation at: clearstation.com