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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: Kevin who wrote (25783)	2/27/1999 9:14:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

E-mail most asked question: The questions that is becoming the main vein of my e-mail is: How do you know to get in and out of the puts/calls and earnings plays with such good timing? Well first you have to understand is that the only way you can play this market these last two-three weeks in the 'hit 'n run' method. Once you have your method chosen, you go on from there. I spend hours researching the plays and that is not the way of 'traders' but it is my way. I am a staunch proponent of 'anticipation' and moves when a stock's earnings are imminent and I have a pretty good feel for when the internet sector looks to rally. I make mistakes and that is where the 'run' part comes in.. I don't nurse losing trades, and I also 'run' when I have a decent profit on a trade, irrespective if I'm holding for 1/2 hour or 5 days. I am not a scalper and I don't think that 5 points intraday gain is called a 'scalp'.. Don't fear the occasional daytrade. If you consider yourself a 'position trader' as I do, be flexible. You can't always find position trades in all market situations. On the other hand you will probably make the same profit in a 1-2 day hold as in your past 'position trades'.. Stocks are moving quickly these days up as well as down. Don't get caught up with 'tags', (i.e, investor, position trader, daytrader, swing trader) just hold a stock for a 5% or more profit. I haven't touched my long term portfolio but I have been looking at my intermediate portfolio and noted that these are all sector related. My hottest sectors have been mid-cap retail, wireless telecommunications, broadcasting (cable),communications and publishing. I haven't owned a tech stock in weeks or a computer stock save for PMRY, SCAI which have done rather well. I am still a proponent of keeping the better earning plays as part of my intermediate portfolio and to make additions as the stocks warrant. I have been playing options more lately simply because NSOL is more fun and profitable to play when you allocate 8-14k for 10 calls rather than 156,000 for 1k of shares. I have gotten in puts in DELL, MOT, MU, calls in LOW,ANF and HD and the OEX (puts and calls). I intend to continue on this path for the next few days or longer, namely buying earnings plays and also padding my portfolio with 'good options that trade in fast markets' If you can't flow with the market climate then you should relearn some 'strategies for down markets'. You can definitely profit in a 'down' market but it does take work and research. Momentum plays alone won't carry you through the vagaries of a super-volatile market. On buying internet stocks: Buying internet stocks and holding on to them indiscriminately will not work either. Instead look at the ones that have already begun to earn. Revenue, sales and cash flow are of utmost inportance in lieu of actual earnings. Remember a company like YHOO doesn't have to keep a huge factory running like a GM does. It doesn't need all that much money generate even more revenue. If there cash flow is high it is very important because an internet companies cash flow goes to to generate even more cash flow. If sales are good it will generate still more cash flow. Its a fact that the revenue growth of the internet sector exeeds any other sector. I personally like CMGI, BVSN, GNET, CNET, YHOO, AMZN, CKFR, BYND,NTBK, DRIV, VERT, VRSN, VRIO. I'm a tad less bullish on MSPG and ELNK lately but it's just a phase and like NSOL I'll return these two to their proper 'spot' on my watch lists. You should be invested in the biggest of the Internet companies (i.e. NSOL) because even with competition they will preserve the lion's share of the market. If you don't know what to choose than choose CMGI, because you can be sure they know what to invest in.