Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (41492)	5/22/1999 5:15:00 AM
From: Jenna	Read Replies (4) \| Respond to of 120523

General TIPS on the Watch List / Earnings Plays and Silicon Investor So you've picked up a stock that triggered a buy signal: 1)First day in new position: You have the 1 or 2 stocks that had triggered buy signals and the trading day is almost over. Look your trades. Are they about to close strongly near the day high? Are the chart indicators favorable? Did they drop below support? Did they barely hold on to positive territory? Did they start to tank but you think "maybe tomorrow will be better"? If you have your 5% profit and you are in doubt then sell. 2) Second day in position.. The position was okay yesterday but now it's eroding and starting to lose more momentum, make sure you have a tight stop and prepare for exit. Look at the 1-5 minute intraday chart for confirmation. Sometimes the stock will recover and the chart will reveal the recovery, so don't set stops less than 3%. If the downtrend continues get out and look for another position, cut your losses. 3) Day three in position. You sold the 1 that was down the second day or took the profit from day two. Now you are in day 3. The others you held are doing very well now you wonder if to sell and take a profit or hold for more than 10% gain. Here directions are more hazy and you are faced with more choices. The answer depends on what you want from the trade. If you are talking about an earnings play before earnings then sell.. If its a watch list play than hold another day while the stock is still in an uptrend. Sell if you don't care for the momentum in your stock.. For example, I entered both HIBB and GYMB early on Thursday last.. HIBB and GYMB were up nicely when I called the buy signal and some gain was possible. The next day was nil, GYMB I sold and HIBB I waited a day longer and sold for a 3/4 loss. I didn't even want to wait to be stopped out, I just lost interest in the trade. What to expect from "intraday updates" on Silicon Investor Expect us to call stocks that 'trigger' buy signals.. from either that days watch list /earnings play or another recent one. on most occasions we post the entry price, but take into consideration that posting is delayed about 4-5 minutes or so from the actual trade execution. 1) Expect that those stocks that are still in uptrends held over another day will be cited as such. (If I'm in them) 2) When I stopped talking about stocks completely like HIBB after a buy signal its assumed I either sold for a small loss (3-5%) or even had a fractional gain, but nothing 'worth writing home about'. Or that I just transferred it to a longer term hold. I have held stocks like EFII and MACR for weeks and just post only when the uptrend continues or when they appear once again in the watch list. 3) Please do not assume that I personally buy every 'buy signal' that is triggered. If I don't add the price and that I bought, assume I DID NOT, so then it follow I wouldn't know what the stock did the next day if I never got into it. You are totally responsible for the stock after the buy signal is triggered. The 'buy trigger' is a call not by me but by a "mechanically triggered technical indicator alert" 4) The strong stocks going into consecutive days like UNFY, PER, ADCT, INTU, TECD, CATT, PWR, each day that the uptrend continues, I would say, its still strong, or still bullish or holding etc. The GYMB's and HIBB's just disappear. I never ever had a big loss from a 'triggered buy' that I didn't post. That is not our policy to hide losses or change track records. In fact every trade and buy signal is in real time and recorded probably for posterity or until Silicon Investor decides to delete it. 5) Ninety five percent of you don't expect to be 'hand held' or be told exactly when to exit a trade. I can't be 'limited' or so attached like that. That is not part of our service. Basic sell skills usually let you know when to exit losing positions or take profits. We help a lot, but you must learn to identify exit points on your own. 6)The winning or potential winning plays are called so at least you get a chance enter the position, The sell is a 'do it yourself' deal half the time. I usually try to call the sells before earnings, to save anguish of lost profits after earnings report. On the other hand when a stock is in a 3-4 day uptrend like UNFY/MACR/ PER right before an earnings report, I would say distinctly. I think its time to take profits.. because now more is at risk. (UNFY was back down from 17 to 13 2 days after the earnings report) So you see the pattern.. the little losers just disappear and the ones that 'reach' the second and third stages are mentioned. 7) Try to look for the 'repeaters' even in the watch list.. In time you'll see stocks finding their way a second or third time to the watch list or stocks that are familiar to you. But on the other hand, don't ignore a potentially good trade because the sector or stock isnt a hi flyer. Also look for the sectors that are in favor.. If in the morning the news media is talking about strength in the nets you can focus on those. If the news speak of a stock in the telecommunications sector getting an upgrade or good earnings report, then grab at the one on the list from that sector, same with technology (chips,networking,) drugs (biotechs, health) etc. Make it a habit to scan throught the morning financial headlines to see highlights of day's news 8) Most of all get to know price patterns of the stock you are trading. I have people holding NITE and NTBK through big losses who just did not think these would ever go down. They do.... These 3 posts will be added to a new area of the website entitled Frequently Asked Questions.