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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (15021)	5/21/1999 11:05:00 PM
From: Trader J	Read Replies (1) \| Respond to of 56537

**All: For those interested, I have a short book review of "Using Technical Analysis" on the tigerinvestor.com site. Additionally, another book review will be up tomorrow. Remember too that any of your book purchases can be done through our site and we get a small portion of the sale. These funds go back into the site and allow us to upgrade things such as BB software, etc. The site is free as is the newsletter. Please help us out if you will by ordering any of your books through TI. Thanks again. Just as a disclaimer, not that any of you think I would stoop so low: Any of my book reviews are completely honest opinions of the subject matter reviewed and I receive no compensation from anyone affiliated with the writing or publication of the book itself. The reviews of the subject matter are intended for you to use as information in helping to select quality publications and are not intended to generate revenue through the TI site through use of the Amazon.com link. That was just for those of you who may not be familiar with me or my M.O. Trade well all. Tj

To: LTK007 who wrote (15021)	5/23/1999 8:21:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 56537

Max - IFCI and others - looking for breakouts. >>gee whiz look at that,and without any news--and the stock was struggling before today--5-day chart quote.yahoo.com << Good karma here perhaps, IFCI did just what I wanted it to when I wrote this post: >>IFCI - I am buying at $6. International Fibercom is near its lows and has bounced off the 5-6 level strongly several times in the past. Co operates in what is a "hot" field these days, yet has a low P/E. Has shown very narrow price swings lately, looking for a breakout, with little downside.<< the link to that post: www3.techstocks.com This was similar to the action with NBTY. This is what I wrote on 4/29: >>I think NBTY qualifies as a "recently beaten up and left for dead, issue" Here's why: Chart: The stock was over $20 last July. It has fallen, now below $5, a level not seen since 10/96 (full-year sales for 1996 were $194 mil., sales for the most recent quarter were $168 mil.) The stock has "flatlined" since March, and has stopped reacting to bad news. Downside would appear minimal...the long term prospects are good. It would seem like a safe stock to hold with the possible expectation that when they gear up their Internet sales, the stock could jump.<< The link to that post is: www3.techstocks.com and a stock chart, showing the jump in price shortly thereafter: quote.yahoo.com What's the point? I think a useful strategy is to look for stocks that have fallen and then "flatlined" When a stock chart shows a very tight daily range, when it does not react to negative news, it can mean the selling is over and that a breakout to the upside is possible. Of course, they must be companies that still have future potential - expanding markets, improving demographics, etc. This is not a suggestion for daytraders, but could be a useful place to park some money with limited risk while waiting for an upside. Anyone agree? Disagree? Should we pursue this strategy further? Next post, a similar strategy - buying on a breakout. StockHawk