Education Center
I usually see your evaluation of Aggressive and Safer to be 180 degrees from mine…I sure wish I could understand your reasoning specially with today’s VRSN example.
This question came in last Tuesday. That day VRSN moved up, but on lower volume. The stock was approaching a series of tops hit in June, July and August. We ran a play from the close that day as ‘aggressive,’ and a play over that resistance as ‘safer.’ VRSN was moving up, but on lower […]
Just want to ask your opinion on something we learned in a class we took. Being that INTC has taken such a big hit (called a slam in class). Why would we not do a Credit Spread (Bull Put Spread in class) on it since it is still a great company and should have found support at these prices. Maybe a 40 and 35 spread?? If you have time your comment would be very much appreciated.
There are times when we think a stock has been hammered and we feel it will recover. That may prove to be a good time to take a long term position or make some other type of play on it. With INTC, we are not sure this is the time to do that. Yes, it […]
In [the September 28] newsletter . . . under “Our plan” heading, Mr. Johnson writes “… we will look for stocks that are trading back near support and those that made good moves today but show early weakness.” Could you tell me how to do that?
What we do heading into any trading session is know the stocks we are really interested in detail. Specifically, we want to know support, the breakout point (if we are playing that) or near resistance if any, average volume, what type of play we want to make on the stock (e.g., bounce off of support, […]
Everyone including yourselves say that stocks like DELL and INTC are the “old” leaders and will not lead again at least in the near future. I know by your writings that you have a large position in DELL and probably in INTC as well. Did you sell your positions? Are you holding these positions and waiting? What is your strategy if they begin to rise or fall (I know one is writing covered calls and/or buy puts on a fall and buying calls and/or writing puts on a rise). Will you sell into strength if they start to rally? I can see both DELL & INTC going down even further if they do not make a rally attempt in the next couple of months, particularly when tax selling time rolls around. What should be done with these positions if an investor just purchased them a couple of months ago and got caught in the down draft. Both were purchased as long term holds, but now things are not looking so good for these two companies. Seem to always be late to the game. I do believe INTC will be OK in 6 months to a year, but I’m concerned about DELL. Opinion please.
The hardest question in any position you have held long term and have a good cost basis in is “how long do I hold if the stock continues to sell?” Some stocks broadcast sell points long before the analysts start ragging on it, but INTC was pretty close to the vest until some negative calls […]
Where can I look to see the futures? I would also like to watch them, but don’t know where to find them.
CNBC and Bloomberg carry them live each morning. They are also on the web at several locations. http://money.cnn.com/data/markets/ under its ‘markets’ section has an ‘a.m. market call’ link that tracks the futures and the world markets before the open. There are others as well, but we like the cnnfn cite.
What is the meaning of team trades? The information from what I see comes out after the fact, which team are you talking about?
This section represents trades the Investment House writers are involved in implementing the strategies from the various reports. The purpose of these summaries is to show insight into how we implement the trades we discuss in the reports. We like to show how stocks move intraday and how they often repeat a pattern that you […]
You often mention money flow. Where do you derive this information from?
We look at many measures of money flow to get a flavor of what we feel is moving into the stock. When institutions want a stock, they cannot just go buy it. Price would fly on the buys and then fall. They accumulate over months. This can turn up in many clues. We look at […]
I use Telechart 2000. Where can I go to get other indications for money stream and balance of power?
Money stream and balance of power are two proprietary indicators developed for TC2000. They are roughly the equivalents of money flow and accumulation or distribution. There are several sources for money flow calculations. On the web you can get indications from many of the charting services such as Big Charts or Investertech. Bloomberg has its […]
When you say a stock is a buy up to a certain price on a move, why do you limit the buy point? Is the limit your short term target?
The limit we put on some plays and the buy points is based on our method of not chasing stocks that are extended on a move up. If you buy in after a stock makes its initial run up, you could be stopped out (applying an 8% sell rule) if the stock runs up 10% […]
There is something very confusing to me that needs some attention. Two nights ago you said safer buy on EXDS would be over 67 with over 8 million shares. Yesterday it closed at 67 7/8 with 8.8 million shares. Last night’s letter said the safer play was to buy EXDS at 73 with volume at 11 million shares. I am in at 54 but how come you don’t say, now that EXDS went over 67 with 8.8 million shares, anyone that wanted to buy that stock should be in already. Instead you upped the buy price. I just don’t get it.
Good question. When a strong stock is making a strong move, we try to get in when it makes that first move. The break over the June resistance was a good point as was the break over the July high. We often add to positions of a winning stock as it moves up. There is […]
