WR's Momentum Trades

[ChrisJP]

Hi Harbie ! Yeah, how long will it last ?

The big question. Its been going on for 7 or 8 weeks now. I'm guessing there are maybe 3 or 4 "fun" weeks left. After that, I think the markets will weaken ... and hey ! its summer !

There will always be plays, there always are ... but my feel is that we won't see the easy 8 - 10 baggers we are seeing now. But there are still plenty of "pre-delisting" stock runs waiting to happen, lol.

I still like to look at charts to try and get a feel for sentiment and money flow.

http://quote.yahoo.com/q?s=^IXIC&d=c&k=c2&a=v&p=m50,m200,e50,e200&t=1y&l=on&....

As you can see, we are currently trading above the 50 dMA but well under the 200 dMA. I see 3 possible scenarios:

1) We head for the 200 dMA short term, party time continues, head back down to the 50 dMA longer term, but the trend is still basically up. Great environment for the OTCBB.

2) We crawl the wall of worry along the 50 dMA short term
until the 50 dMA line and 200 dMA line converge. Still good for the OTCBB.

3) Reality sets in soon, after all, we have energy problems are earnings warning season coming -- we break below the 50 dMA and retest the 1600 - 1800 area. Not so good for the OTCBB.

By mid/late June, I personally think going conservative until it is clearer what the markets will do from Oct 2001 - Feb 2002 might be a good approach.

Just my thoughts,
Chris