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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: Zack Zaccagnini who wrote (36830)	4/27/1999 11:25:00 PM
From: kendall harmon	Read Replies (1) \| Respond to of 120523

HIFN--had some time to study this one after the close. It was spun off from STAC back in December 1998 which is why Jenna had not heard of it. Powerful earnings acceleration in a strong and growing VDN market. I encourage others to take a look.

To: Zack Zaccagnini who wrote (36830)	4/28/1999 12:43:00 AM
From: Jenna	Respond to of 120523

Zack its not something we can really get into on the thread. It's not really complicated, its just been repeated and does require a bit of reading at least to understand the major concept behind the strategy which is "anticipatory upswing". It looks more complicated than it is. There is a collection of past articles from Silicon Investor that I gathered over the last 2 years marketgems.com explaining and exemplifying the strategy. Any trading needs a basic knowledge of trading concepts whether it be daytrading, swing trading or position trading. A thumbnail description I have give before.. simply put we are trading on the increased volatility of stocks before an earnings report. These stocks were chosen from a universe of 8,000 based on their fundamentals, revenue growth etc. I drop stocks that are technically in a bad way so you end up with a group of stocks that were filtered for its high technical rank (or look to be reversing a downtrend).. as well as fundamental rank. AS the stock approaches its earnings report (1-7 days) volatility increases and the stock will exhibit "anticipation" that shows by the stock's and rise (or fall) with increased volume. When it triggers our technical buy signals we enter, probably 1-7 days before the report and hold until the anticipation dissipates. Sometimes the anticipation begins all over the day before the report as others by this time are noticing the stocks rise. We usually sell before the actual earnings unless the stock is particulary attractive. We can sometimes have 2 trades on a stock before a report (ELNK,CPWR, NEON). Its pretty much a coordinated effort and we do 'call' the buy triggers in a good many cases. We expect to hold for 5% or above profit and then close the trade. After the company reports, if it is a good report, the stock becomes a 'frequent trade' or even an intermediate hold. The really nice part is that these stocks become 'repeaters' beating estimates quarter after quarter and we can actually gauge the stocks price patterns after and before an earnings report and hopefully apply that knowledge to the present report. The longer you work with us the easier it becomes so by next quarter you know what to expect. Most of the 'buy' triggers last long enough for a good profit.. Putting in stops will allow you to exit a trade right when and if it turns sour. All this we balance with our 'watch lists' which are high momentum stocks.. so that we can 'change our hats' to the internets or the earnings plays whenever the market climate changes and money begins to rotate from sector to sector. If you have one subscription we still put some earnings plays on the watch list from time to time. And if you are just newsletter, you can always use these same stocks to trade over and over again for swing, position and intermediate trades. Its worked very well going on 3 years now with 2 of those three years readily 'trackable' on SIlicon Investor.