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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (19478)	3/5/1999 8:02:00 AM
From: Larry S.	Respond to of 53068

Kensey recommends VRSN, discusses other stocks in oversold positions - FWIW: - 'kensey' has recommended VRSN (Long) 'kensey' said: Definitely going to be eyeballing trade in Verisign (VRSN) in the morning and over the next few days to spot and gauge potential lift-off from a short term oversold condition. Stock is in a strong macro uptrend that is characterized by aggressive buying that has tinged the color of the volume indicator graph blue. The stochastic lines are curling out of the oversold region. This indicates that prices here are 'low' relative to where they have navigated over the recent past. Stochastic is an oscillator. An oscillator describes, captures, abstracts, and encapsulates price action within the confines of a trend. Or, if a definitive trend exists, stochastic can be used to time trades in the direction of that trend. In this case, the trend is up. Definitively. This is not only obvious from the upward trajectory of prices but made clear by the predominance of green above the price graph. Thats about all that can be gleaned from the trending bars. Direction. If green predominates, direction is up. If red predominates, direction is down. If neither predominates (some sort of striping affect) then there is no significant trend. Thats the cursory view. Thats the quick take. Thats what the trending bars tell you. The trending bars do not have an element of timeliness in trade execution. When a trending bar starts to trace, it usually is too late to buy into it. The only time I buy the appearance of green is in a breakout situation. A breakout is the beginning of a trend. So buying green at the get-go is a reasonable approach. But once a trend is mature, stochastic is a much more useful way to time entry. When the stochastic lines hit the oversold marker and then start to curl back up, that usually indicates that a price fade has runs its course. A price fade is short term corrective action within an uptrend. Clearstation has a list in 'Tag & Bag' that contains stocks that are in this technical situation (oversold within an uptrend). In fact, thats where I grokked this idea. Its called 'Stochastic - Bullish'. Some of the stock ideas that appear on this Tag & Bag list are not that great. But by using the graphs in bulk feature, you can throw up a plate of graphs in a time efficient manner and be able to apply the personal filter. Other stocks that are in the oversold-within-an-uptrend category are Atmel (ATML) and TCA Cable (TCAT) and Synergy Brands (SYBR). Or, those are the other stocks in the 'Stochastic - Bullish' list that I liked. kensey See the annotated graph of this recommendation at: clearstation.com