Posted by: eminitrader April 15, 2007
Making Money with Eminitrader
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Bri: Bio-techs are showing some strength here. The only bad thing is that most of them do not have any earnings and depend a lot on their products. It is very speculative and should be bought in small amounts on a pullback. How do you define pullback? Go to www.clearstation.com and type in the symbol. Check the Stochastic. If it is below 70, it is a pullback. Then look at MACD histogram, it should not be lower than that was made in the previous pullback. Then you can put that stock in the wait list and watch it in the morning. If it trades above the half-hour high, then buy it. Run an analysis to see if there is a 3:1 return. If so you're good to go. All these will work when we are in an uptrend like we are in now. So it is necessary to determine the direction of the long-term trend before we do anything. I have mentioned how I determine the long-term trend in my previous posts.
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