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Gerry,
Trading the SPY is always a good means of playing the market (via stock
purchases) on a daily basis. As a matter of fact, I am currently long both
the SPY and the MDY (S&P 400) as we speak. However, the reason why I
presented my original question as to FINDING STOCKS is because of the
greater reward that may be achieved by some of these stocks that appreciate
greater than the SPY on a daily basis.
Let's say (hypothetically), Monday morning looks like we are going to get
a continued rally in the stock market from Friday's late afternoon surge.
As a result of Monday's move, if the S&P rallies 11.00 points or an
equivalent of approximately 110 Dow points, the SPY would have appreciated
about 1%. Not bad. However, by doing our scan on Friday for those stocks
that attracted most of the early buying, it should be believed that those
same stocks will again lead this market higher because it is showing us
just which stocks are 'desired' most.
Further, if we get that rally of approximately 1% or 110 Dow points, it
would not be surprising to find those 'highly regarded/desired' stocks up
several points and usually greater than the 1% achieved on the SPY. That
is why I suggest we look/scan for those 'desired' plays.
Keep up the good work,
John Boggio
At 02:01 PM 8/22/98 EDT, JER3CUBE@xxxxxxx wrote:
>In a message dated 8/21/98 10:54:25 PM Eastern Daylight Time,
boggio@xxxxxxxxx
>writes:
>
><< . One of my favorite techniques is to find stock that were down
> big during the day but rallied substantially off those lows by the close of
> trading. >>
>
>Hi John : )
> If your observation is valid...How about the SPY (spy-dr) on he amex.)
>I originally bought on Aug 6th low. Managed to get stopped out Friday,
>because
>I raised my stop to 87 1/2% of range, 106 1/8...this is approx. My reasoning
>is that I didn't want to get caught in a gap type drop, if it traded below
>the prior low 105 1/2...double bottom.
> As of Friday, it tagged that price again...tripple bottom ??....MAYBE?
>and closed up handily in the 108 area.
> How does SPY fit in with the trading strategy you mentioned. If so,
>please give me your imput as to how I can re-enter this baby, and participate
>in the move to 112 1/2 ...114 area into Sept 6th, LABOR DAY.
> I appreciate you experience and understand that you are not giving
>investment advise any more than I am, but rather trading techniques that have
>worked well in the past.
> I am sending a copy to RT, as I feel it might be of general interest. I
know
>that I will be interested in reading other responses that you get as well as
>hearing what other stocks pass the screen that you suggest.
> THX , GerryB/jer33:3/eccl 1:9
>
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