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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: WaveSeeker who wrote (26481)	3/8/1999 9:56:00 PM
From: Jenna	Respond to of 120523

Very interesting because we follow the same things.. 'strongly trending stocks that have pulled back over several days' (i.e. my 7 day moving average strategy). 'rudimentary test that combined Zacks earnings rank with a volatility factor,.. it was amazing to see that fundamental factors were directly correlated to technical price movement..>>> That is what I do except that I do that with about 4-5 technical and fundamental scans from which I chose about 20-25 candidates from 8,000 stocks and about 5 alternates... .. <buy 5 days before earnings>.. yes that to is about average (3-5 days) when I would enter the plays, with an exit day of earnings unless the stock was strongly trending and technicals pointed to possible impending breakout rather than a dissipation of the uptrend due to a potentially overbought situation. I wish I could personally make use of what you are offering but I don't have tradestation. I would however like to continue a discourse via a PM because I already have an idea that might appeal to you and certainly appeals to me.

To: WaveSeeker who wrote (26481)	3/9/1999 7:58:00 AM
From: Jenna	Read Replies (2) \| Respond to of 120523

Volatility and Market Gems Picks: Important Post << I developed a rudimentary test that combined Zacks earnings rank with a volatility factor, and it was amazing to see that fundamental factors were directly correlated to technical price movement.>> What BankShot does is amazingly similar to my own strategies and as such I hope and expect to see him contribute more to the thread and probably to Market Gems as well.. Now about the volatility. You will have noticed that a generous amount of our picks are volatile. This is why they move as quickly and as sharply as they do. I often test for volatility both in the beta of the stock and also test the volatility in the stocks options where applicable. That is also intrinsically connected with the bollinger bands which are a mainstay of my personal stock trading strategy. I have often stated that when the market is up (even 20 points or so) our stocks will rally a lot more than the market. This is the combination of the volatility factor and an added factor of 'good fundamentals' and having beat the estimates in the past quarter. SNRZ is an example of a non-so-volatile stock that was up 5 points yesterday simply on the weight of a great earnings report. When we combine volatility and good earnings report we have dynamite.. and sometimes (as i the case of CKFR and SE) these stocks can kick you in the teeth as well. Anyhow when you buy volatile stocks you have to make decisions in fast motion. They will be moving as a merry go round moves and if you don't jump on you lose the 'magic ring' on the merry-go-round. It follows that if your stock is so volatile and goes up so much you should be taking that gain in a short term span. If you don't the stock can turn on you and move down. That has happened in CKFR (which I owned and also SE) luckily it doesn't happen much without a good warning first. Anyhow if a stock like CKFR and SE rebound after a fall, yes I would consider a 'dead cat bounce' but I wouldn't necessarily hold it for longer than a 1 day bounce, because sometimes the decline can continue after a bit of relief. If your stock is volatile you have to track it more, that is the price you pay for the 100% gains in SE and CKFR in a short term. You must be very aware of any 'news' changes in your portfolio if it includes some of these hi-risers. You can't just hold because it was up 20 points and you are assured it will continue. When you have the combination of a volatile stock AND HIGH EARNINGS GROWTH (or even high revenue growth) you have a super potential for enormous gains. That would explain why some internets are virtual powerhouses. Quite simply their fundamentals and/or revenue growth is spectacular (here you have you NSOL's, VRSN's, CNET, EBAY,SATH, NITE, NTBK, BVSN, YHOO, AOL, etc..) add some great tech stocks like WCOM, LU, NOKIA and you have a virtual recipe for success. Of late I am expecting our old favorites the Semiconductors and our electrical components to move and the VTSS's and VECO's as well. Hi techs like those will move often as the internet moves when a 'good news' or 'expectations' are lifted for the sector. Again we have to move quickly here. JBL, CMVT, SLR, VECO, VTSS were on our watch list for the last 3-4 trading sessions and should continue to do well. If you are gun-shy and I recognize it from some of your posts and e-mail you should be choosing the less volatile stocks on our list. The TJX's, the YUMs, ANF's, WMT's, the ZQK's. They are there as well.. We have our wonderful sector the broadcasting, telecommunications and communications sector that remains steadfast in its gains with a relative strength in the high nineties and a performance rank which is the same. I have amassed a nice amount of drug stocks including ELN which has been in my portfolio for years and CNTO,AZA,MRK, and 'remnants' of nearly a half dozen other biotechs and drug stocks. You can always mix and match both a trading portfolio and/or intermediate/long term portfolio from our stocks according to your risk tolerance and trading targets (whether you consider yourself to be a short term trader or a longer term trader).. and as I said dont fear the occasional daytrade.. it might seem like a daytrade to you but to your bottom line you might be adding 10% or more for one trade and in another life was a 1-2 week hold. So if our stocks are volatile, those are the stocks that traders look for and the ones we will have in our watch lists. For those more conservative out there we have our newsletter with a stress on high fundamentals that can be the 'taste' of others. Either way you have to watch your stocks. And if I track 20 or 30, its the same. You must track them a few times a day or at least after the close to see if any news has come out on your stock or if any signficant trendlines were broken, for good or bad.