AI
Wednesday, October 29, 2003 8:06:28 PM
Confirmation of 20 day ma breakouts-VOLUME charts CCI/SEAC
One of our best strategies is the buy of a stock with very strong technical strength at a bounce off a key support area - the 20 day ma.
These comparative charts show why SEAC was simply more attractive as a potential play than CCI. SEAC is really a reversal and CCI is a breakout, the breakouts are not as easy to track as the reversals because they can languish for a longer time. The caveat here is that once they do break out, the sky is the limit.
We had SEAC yesterday and today on the newsletter. Sometimes there are about 20 or so plays on my private list from which I choose the best 7 or 8 for the traders. I have VOLUME indicators open to alert me on volume breakouts. After 3 days I sometimes turn them off and give up to make way for new plays. Its important to be attuned to new plays daily with the freshest chance for big gains.
So I tuned out CCI volume alerts today in favor of some other and only after the close to see that this exploded on huge volume as well. Lessons learned... don't give up. We gave up on GRMN after only a few days, we gave up on ERES thinking it had hit a top. NEVER GIVE ON ON HIGH TECHNICAL STRENGTH stock, you might be giving up a huge gainer or swing play. If you want to give up, then give up on the losers like BSTE, JCOM, CA, NTES etc. These will only disappoint.
One of our best strategies is the buy of a stock with very strong technical strength at a bounce off a key support area - the 20 day ma.
These comparative charts show why SEAC was simply more attractive as a potential play than CCI. SEAC is really a reversal and CCI is a breakout, the breakouts are not as easy to track as the reversals because they can languish for a longer time. The caveat here is that once they do break out, the sky is the limit.
We had SEAC yesterday and today on the newsletter. Sometimes there are about 20 or so plays on my private list from which I choose the best 7 or 8 for the traders. I have VOLUME indicators open to alert me on volume breakouts. After 3 days I sometimes turn them off and give up to make way for new plays. Its important to be attuned to new plays daily with the freshest chance for big gains.
So I tuned out CCI volume alerts today in favor of some other and only after the close to see that this exploded on huge volume as well. Lessons learned... don't give up. We gave up on GRMN after only a few days, we gave up on ERES thinking it had hit a top. NEVER GIVE ON ON HIGH TECHNICAL STRENGTH stock, you might be giving up a huge gainer or swing play. If you want to give up, then give up on the losers like BSTE, JCOM, CA, NTES etc. These will only disappoint.
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