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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 (18270)	11/8/1998 3:54:00 PM
From: Jenna	Respond to of 120523

Part II to earnings plays.. I got shut out last window.. I was going to continue by saying that when you have an overbought stochastic, it DOES NOT mean sell the stock or even don't buy it. This is where you will need other indicator to confirm or not confirm this signal.. In some cases the MACD or MACD histogram will show you that it is not below the centerline indicating a possible downdraft, or way out above its upper reference line indicating well overbought.. In yet other cases if you are watching the 13 day Exponential Moving Average and the 7 day.. they could be trending up nicely and would you want to sell a stock with OVERBOUGHT stochastics if these moving averages are still trending up and bullish? There are many combinations to help determine how overbought or even oversold a stock is. that's why I like to use essentially the same 20 or 25 indicators all the time because I use one or two to confirm or disregard a stochastic reading. I would not use more than about 3 because otherwise you'll have all kinds of triggers and confusion.