Louetta's Lore

[IIC]

Back to the market. I've been messing around looking at charts of stuff like the NYSE and NAS 100 looking for possible clues of which way we're going and convinced myself I saw a turn upward so late this afternoon I bought 5 stocks. I got a list of the top-rated stock in each of the IBD groups and started going thru the groups alphabetically til I found 5 charts which seemed to also look like they might be headed up and bought a small position in each just to have some horses in the race. BMO BAP GVA HMSY and WW. Looks very impressive since all five went up today but I didn't buy til late so I didn't benefit by that.

I've always said that group movement is very important...I don't really like IBD groups that much because except for the daily report they base movement on too long a time frame for me.

You might check out MG...Subscriptions are not cheap...But they do have some R/T stuff(Top 5 based on Mkt. Cap) and some delayed stuff based on %. But IBD's paid stuff is delayed anyway.

Check it out...not suggesting you pay for anything...but click HOME ...above left...Some good free info...Best, Doug(IIC)

http://tal.marketgauge.com/MGHome/PHSReportsIndex.asp

[ParkTwain]

Group movement can show institutional interest, but it's actually only an aggregate. The individual member stocks drive the sector aggregate's strength. Not much difference to me in just looking for the best individual stocks, regardless of sector. Yes, there can be "gravity" in a falling sector that eventually takes down the leader in a formerly hot sector.

[ParkTwain]

Try to take in the Boston Stock Exchange

Louetta, I moved from e. Mass. to Vegas 3 years ago. Had lived there for 20 years, working in high tech (software and fabless chip companies) after growing up in Memphis, Tenn.

During my son's senior year in h.s., (though he's a jazz musician) he participated in the e. Mass. h.s. stock picking contest. His team of 3 won for that semester, and they were rewarded by a lunch at the Boston Globe and a nice tour of the Boston Stock Exchange. I tagged along for some of it. Smallish interior at the Exchange but very high class and all business.

[IIC]

Group movement can show institutional interest, but it's actually only an aggregate. The individuals drive the aggregate strength. Not much difference to me in just looking for the best individual stocks, regardless of sector. Yes, there can be "gravity" in a falling sector that eventually takes down the leader in a formerly hot sector.

Ya know...some say "look for the strongest movers in the strongest groups"...I say "look for the one's that are riding their coat tails...short term anyway"...

Usually when a stock is moving up contrary to a group's downward slide it is news-based from my experience

...Doug(IIC)

[ParkTwain]

"Ya know...some say "look for the strongest movers in the strongest groups"...I say "look for the one's that are riding their coat tails...short term anyway"..."


Well, by then you are chasing the stock. If it's a D/T, then fine, you'll have to have a quick trigger finger on the sell; otherwise, you're going to end up with the market's dust in your mouth. Anticipating the move brings the $$$, IMO. Doug, you're watching for the "slingshot" effect of one stock catching up to its brothers. It's in effect a kind of pairs trading or poor man's statistical arbitrage stuff.

[IIC]

Louetta, I moved from e. Mass. to Vegas 3 years ago. Had lived there for 20 years, working in high tech (software and fabless chip companies) after growing up in Memphis, Tenn.

During my son's senior year in h.s., he participated in the e. Mass. h.s. stock picking contest. His team of 3 won for that semester, and they were rewarded by a lunch at the Boston Globe and a nice tour of the Boston Stock Exchange. I tagged along for some of it. Smallish interior at the Exchange but very high class and all business.

Park...Congrats to your son...I was at the NYSE and AMEX in '69...The Pacific Coast SE(very old one) in '70 and the just plain old one circa 1989...The NYSE in '93 (The Amex was not available to the public in '93)....Anyway, they all looked liked a bunch of guys running around like chickens w/ their heads cut off yelling at each other to me....Doug(IIC)

[IIC]

"Ya know...some say "look for the strongest movers in the strongest groups"...I say "look for the one's that are riding their coat tails...short term anyway"..."


Well, by then you are chasing the stock. If it's a D/T, then fine, you'll have to have a quick trigger finger on the sell; otherwise, you're going to end up with the market's dust in your mouth. Anticipating the move brings the $$$, IMO. Doug, you're watching for the "slingshot" effect of one stock catching up to its brothers. It's in effect a kind of pairs trading or poor man's statistical arbitrage stuff.

Well...it might be...But there is a big difference between investing and trading...I do both...But my passion is trading.

If you read my thread you'll notice that I traded IPSU today...Now I wasn't too happy when it went red...I almost stopped watching it at that point...I prefer stocks that do not breech the first 1/2 hour low afterwards...But I sorta know this one so I kept watching...When it bounced EXACTLY off medium support I knew(almost knew) it was a possible DT winner.

Doesn't have anything to do w/ groups...But it was nice. However, there were a few negatives...The spread was wide a lot and the trades were small...I did not go in heavy but it took 3 sells to get out.

Back to groups...This is a good idea for intermediate investors who use IBD...Look for groups on the move...Not the top groups...But say a group that has moved from 150 to 120 to 90 to 60 or something like that...Look for good ones in those groups...You can oftentimes find winners before everyone else does...Just a suggestion for group watchers...Thanks, Doug(IIC)

[billyjoe]

Doug,
I was at the Kansas City Commodity Exchange in 1968 with the Future Farmers of America National Convention. Can't remember anything about it. Went by train from Ohio. That was pretty cool.

--------------billyjoe

[billyjoe]

Louetta,
Did you swim the 100 or 200 Free ? What were some of your times ?

------------billyjoe

[Lyehopper]

Louetta,
Did you swim the 100 or 200 Free ? What were some of your times ?

------------billyjoe

I swam across "Wade's Pond" on a dare when I was eleven. It's a pretty big pond too. My little brother told Mama and I got in trouble....

[mrmarket]

I sense the Queen Bee has certainly got the drones buzzing around here...good thing because this market really sucks.

[Lyehopper]

I sense the Queen Bee has certainly got the drones buzzing around here...good thing because this market really sucks.

Nice shoulders there $$$Mr Market$$$.... Do your highly developed shoulders help you with your backstroke too?

[Louetta]

I've always said that group movement is very important...I don't really like IBD groups that much because except for the daily report they base movement on too long a time frame for me.

You might check out MG...Subscriptions are not cheap...But they do have some R/T stuff(Top 5 based on Mkt. Cap) and some delayed stuff based on %. But IBD's paid stuff is delayed anyway.

Check it out...not suggesting you pay for anything...but click HOME ...above left...Some good free info...Best, Doug(IIC)
http://tal.marketgauge.com/MGHome/PHSReportsIndex.asp

I'm not sure IBDs method of handling the groups is best but hopefully the best in group gives you a good stock to start your analysis from. All I looked for was the top stock in a group not whether the group was a top one. That might turn out to be a big weakness.

Just pulled up MG. Lots of interesting goodies it seems. Will study some more. Was trying to beat the bell.

[Louetta]

Louetta, I moved from e. Mass. to Vegas 3 years ago. Had lived there for 20 years, working in high tech (software and fabless chip companies) after growing up in Memphis, Tenn.

During my son's senior year in h.s., (though he's a jazz musician) he participated in the e. Mass. h.s. stock picking contest. His team of 3 won for that semester, and they were rewarded by a lunch at the Boston Globe and a nice tour of the Boston Stock Exchange. I tagged along for some of it. Smallish interior at the Exchange but very high class and all business.

I've never been there. Not sure why. You'd think they'd want us to see a real exchange.

[Louetta]

Ya know...some say "look for the strongest movers in the strongest groups"...I say "look for the one's that are riding their coat tails...short term anyway"...

Usually when a stock is moving up contrary to a group's downward slide it is news-based from my experience

...Doug(IIC)

Strongest movers in strongest groups sounds good to me in a stronger environment but although I've been buying lately I'm not sure how strong we really are therefore looked for something more conservative (e.g. BOM).

A good example. On 8/16 as I reported here I bought some of Poormans stocks. One was VPHM at 9.62. Closed today at 12.61, a 30% move in two weeks on a couple of upgrades. Problem is it could easily go 30% the other way if the market weakened (lots of Poormans stuff is pretty hairy). Therefore since I'm not so sure we're really on our way up I'm being more conservative for the mean'll.