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All,
Go EGGS Go! What an unbelievable week. My overall portfolio was
up over 20% for the week and it hit a new all time high each and every
day. Now if we can just get a few more weeks just like this <G>! My
position hasn't changed from last week. I'm still fully invested with
DELL, EGGS, ERICY, HBOC, MLT, SPF, and U stock and CPQ LEAP Calls.
All the indices I follow are in short, intermediate, and long term up
trends and are at the middle or in the lower half of their short term
up trends. That means there is still plenty of up side potential, but
I'll continue to watch my stops and targets closely to protect these
profits.
Since I didn't close any positions, I didn't open a position in
RDC. RDC is no longer my choice for a replacement as it made a new 52
week low Thursday, causing me to redraw the short term down trend
channel through the 7/2/98 high. I put RDC back in my normal stock
list and won't get interested in it again until it breaks out of the
new Short Term Down Trend Channel (STDTC). For my new replacement I
chose E*Trade Group (EGRP). I don't have any stocks in the financial
services sector and wanted one. EGRP meets that requirement and has
the added advantage of being internet related in case this internet
madness keeps up. At the same time it is making money which should
help protect it if the internet bubble bursts.
EGRP at 24 1/2 is in a Short Term Up Trend Channel (STUTC) with
the top at 26 1/2 and the bottom at 21 1/2. It hit an all time high
of 47.625 on 10/1/97 then fell to a low of 17.375 on 12/19/97. It
broke out of its STDTC shortly after that but then went into
essentially a seven months sideways move to form a good base. It made
the sideways move by first having a shallow STUTC and then a shallow
STDTC. It broke out of the shallow STDTC Thursday on good volume and
now appears poised to make a run back to the old high. RSquared,
Tema(S/C) and Tema (MFI) are indicating the start of a new up trend.
The fundamentals are good with a Price/Sales of 4.40, no debt, 23%
insider ownership, and triple digit revenue and earnings growth. If I
close one of my positions, I'll replace it with EGRP. I'll set the
initial target just under the 97 high at 47. I'll set the initial
stop just under the STUTC at 20 3/4.
I'll send a EGRP.GIF chart to everyone on the chart email list.
If you aren't on it, and want on, just yell.
Jim
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