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Daniel Cruz wrote:
>
> Hello RT's,
>
> I'm trying to learn how to trade stocks and I have a question. I've been
> following Amati Communications (AMTX). Now from Jan. '97 to about Aug. '97
> it seems to have made what looks to me like a texts book Head -n- Shoulders
> bottom, increased volume on the left shoulder plus increased volume on all
> the rallies, reduced volume on the declines, etc. About mid Aug. we have a
> break out on high volume followed by a return to the neckline in mid Sep.
> This seems to me exactly what it's suppose to do. My question is why is
> there a possibility of a rally when the "fundamentals" look so poor.
> Example:
>
> P/E: is not calculated due to "negative" earnings.
> Price to book: is about 50
> Price/Sales: is about 25 (which seems high to me)
>
> I perfectly understand why technical traders in commodities do not follow
> fundamentals. You know things like people will always need to buy gas and
> eat bread and build a house, etc. But, people really don't need to buy a
> share of stock, especially one with poor fundamentals, that's why I'm
> confused.
>
> Any assistance to my understanding will be most appreciated.
>
> Also, I've read here that a study of cycles is a good tool to apply to
> trendlines, how do I get started in the study of cycles. Thanks very much.
>
> Daniel Cruz
Hey Daniel
I think the other day wade cook put it on his site a stock (amtx)that
has a tradeing range. WATCH YOURSELF. I didn't do it because I didn't
like what I saw. So, I said forget it. If you want some stocks to
paper trade or look at here: JNJ,S,MCIC,KO. If the S&P furtures do good
in overnight tradeing then these might be good possible trades.
Good tradeing
Joe Frabosilio
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