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All,
I'm back to over 60% cash with being stopped out of my AMZN and
SEEK positions. That leaves me with DELL, DOSE, and U stock and CPQ
LEAP calls. Looking at the indices, I don't see any reason to change
my strategy. I'll continue to move back into long positions. This
week I'm going to the telecommunications industry and my pick is LM
Ericsson Telephone Co (ERICY).
ERICY at 26.06 is in an Intermediate Term Up Trend Channel
(ITUTC) with the top at 32 and the bottom at 26. It's been in a long
term up trend for several years and hit an all time high of 32 on
6/18/98 shortly after it split 2 for 1. In the last two weeks it has
pulled back to the bottom of the ITUTC, bounced of it, and pulled back
again. I think the bottom will hold, but if it doesn't I won't be
risking much since I'll set my mental stop at just under the bottom of
the channel at 25 3/4. Since this is a foreign company there isn't a
lot of fundamental data, but it is 75% insider owned and has good
revenue and earnings growth. I'll open a position at Monday's open.
I'll set my target at 32 and my stop at 25 3/4.
I'll send a ERICY.GIF chart to everyone on the email chart list.
If you aren't on the list and want on, just yell.
Jim
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