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.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: RayV who wrote (9329)	1/3/1999 9:31:00 PM
From: Herm	Respond to of 14162

ROST - Still a Bargain! Sure thing Ray! Looking at the weekly chart for ROST shows a strong stock that is at bargain prices. The RSI is approaching the magic 50 and looking to test the old high around $45. Hold off writing CCs until the ROST hook is deep. This attempt is #3 and it should make it past the $45.00. Looking at the RSI from a weekly perspective indicates a low reading in four years. ROST has formed a base and will take off now! If you look at the daily chart for ROST you will see a what looks like a recent double bottom and this cycle is up, up, and away! NASDAQ: (ROST : $39 3/8) $1,876 million Market Cap at December 31, 1998 Ranks 635th in the Fortune 1,000 on Revenue & 619th on Profit. Employs 14,855. Trades at a 54% Discount PE Multiple of 14.3 X, vs. the 30.9 X average multiple at which the Discount & Variety Stores SubIndustry is priced. IQC Weekly Price Chart For ROST iqc.com Doug mentioned to me a few weeks ago that the charts at Askresearch were not accurate. Something about the formula was wrong. I'm convinced that may be the case. The readings are not giving as clean a signal for me. I'm switching over to IQC which gives weekly, monthly settings. I also think we have jammed Askresearch with all of our links over the past few months. Turning Points for Stocks 1. Double-bottom chart patterns with low RSI readings. 2. Upward curve of upper and lower BB with increasing RSI readings. 3. Blowout volume dumps that result in a dead cat bounce. 5. A bounce off the 50-day exponential moving average for a healthy stock that has been pulling back.