Publish date:

Gary B. Smith Yahoo! Chat

Gary chats with readers about Cisco, AT&T, America Online and more.

Gary B. Smith chatted on Yahoo! June 29 at 5 p.m. EDT.

TSCEllen:

Welcome to today's chat with

TheStreet.com's

Gary B. Smith! Hey there, Gary!

Icover asks:

Gary, as a trader are there or have you experienced periods in which you were hesitant to pull the trigger?

gsmith4:

Oh sure, especially when I've been hit with a series of losses!

old_long_trader asks:

Broadcom keeps getting higher. Buy point if I'm not long yet?

gsmith4:

Actually, Old Long, it's not too bad right here if you're willing to use a trend line as a stop.

Claydoh123 asks:

What do you think of

HBO

and

Cinemax?

gsmith4:

Was an

HBO

fan...until

Larry Sanders

went off!

Icover asks:

Gary, since CSCO split it has been trading in a tight range of 60 to 62. What additional item would you be looking for to go long?

gsmith4:

Am already long CSCO, so I think it's actually out of congestion now.

bigcat567_1999 asks:

GBS Your column is required reading everyday. I was wondering your thoughts on ATT over the next 6mo? Thanks.

gsmith4:

Boy, I don't see that stock going anywhere. I'd look for something with some strength.

sunnydog2k asks:

Hi Gary, got an opinion on JNJ?

gsmith4:

JNJ showed some nice strength today ,but I'd avoid it until it broke just a bit higher. Still in a downtrend now.

stalar98 asks:

What do you think of the Staples chart?

gsmith4:

Moving sideways for an interminable period of time. Yuck!

Trench_rat asks:

Gary my man, I have owned a company called RIMM, the maker of the "blackberry" wireless e-mail device. This chart looks like a breakout is near...the spike led to a "pennant-like" consolidation. Today's move seems to confer this interpretation. What it look like to my professori?

gsmith4:

The rat is back. But on RIMM, I'd like to see it take out that earlier June top before I pounced!

old_long_trader asks:

WMT seems to have broken to the upside. Where do you see the buy target?

gsmith4:

I'd buy anytime it's over 467.5.

gsmith4:

Whoops...47.5.

camphobo01 asks:

Gary: I know you don't like AOL and ATHM but don't you think AOL has bottomed at 90?

gsmith4:

Ummm, I'd love to love both, trust me. But, AOL is still in a downtrend.

ddelanoy asks:

What is your opinion of the IPO "Ask Jeeves" ASKJ coming out this week?

gsmith4:

Funny you should mention that, because I'm a big user of their search engine. As for trading ASKJ, though, that's something I'd avoid. Too many unknowns.

dpil2121 asks:

Do you use stochastics at all in your analysis?

gsmith4:

I don't. Can never figure them out!

old_long_trader asks:

Hi Gary. I love this format, wish it were longer. What is a likely buy price target for LU? Thanks.

gsmith4:

Have to say, I like it right here. It's not the perfect set up for me, but better looking than say, AOL.

squon asks:

What is your opinion on WCOM?

gsmith4:

I owned it for a few days, and it just wasn't acting well, so I dumped it. Long term though, I love the chart.

whitebp asks:

Hey have you checked out Boucher's 10 week course on

Tradehard.com

lately. It is very informative. I have been a long time

TSC

and

GBS

reader!

gsmith4:

No, haven't seen that, but he certainly has a great reputation.

bigcat567_1999 asks:

Gary B. Smith, the last time I asked your thoughts on PENN. Do you still think it will see 10 given the light volume lately? Thanks.

gsmith4:

Yeah, I do. Just moving sideways, so that's not bad.

Trench_rat asks:

GB. That huge move on UNPH is compelling...this one had moved slowly and has repeatedly re-tested the 50 day mover, since it has moved pedantically. Is it a good candidate for continues up-trends?

gsmith4:

Well, I sure wouldn't want to be short the stock.

old_long_trader asks:

I'm long GIC. What is the target sell price?

gsmith4:

Tricky chart. I'd get out if it struggled at 43.

revo asks:

Gary, how much do you think the market will rise if the Fed announces a .25% rate increase? Wild euphoria?

gsmith4:

Since that's what everyone seems to think...the market will probably drop!

jkcfp asks:

Gary, Hello: Texas Swim Team Mom has question about ADIC which came up on today's scan! What do you think?

gsmith4:

Hi Karin. No I wouldn't have taken ADIC. Not enough congestion.

mudsquirrel asks:

Hello, Gary! What is your take on AMTD after today?

gsmith4:

Neutral. Too strong to be a short. Too weak to be a long.

Raul_138 asks:

What is the best up and coming mutual fund which cost the least and yet will have a steady growth in the future?

gsmith4:

That would be the GBS Fund, which I intend to start post haste!

sunnydog2k asks:

Have you had any long net trades lately or just shorts?

gsmith4:

I am long CSCO, does that count? Nah, probably not. How about VRTY? I had that as a long? But no, nothing EBAY-ish, if that's what you mean. Maybe tomorrow.

stalar98 asks:

Is there anything you do not to get in on a whipsaw breakout?

gsmith4:

Boy, I wish. No, that's just part of the game I'm afraid.

srlynde asks:

Long and Short on AQCI?

gsmith4:

Sorry, must be an OTC BB stock. Don't have that chart.

Trench_rat asks:

My brother, .the chart on ARMHY seems to also be poised for a near term breakout. This IP chip company seems about ready to attack old highs. Do you see this move anytime soon from this chart?

gsmith4:

I must have looked at that chart 5 times over the last few days. Yeah, I think it's ready to move further, Rat.

srlynde asks:

How much money to seriously start Daytrading?

gsmith4:

Daytrading? I wouldn't start with less than 100K. And be ready to lose most of it.

dpil2121 asks:

What do you think about CMGI after today's announcement?

gsmith4:

Ah, you knew I was short that one, huh? Well, I think the announcement was an excuse to buy the stock. Showed more strength than I thought it would. Oh well.

cazzie_girl asks:

TheStreet Recommends

SNMM what is your opinion?

gsmith4:

You should check my contest column out. I'm long that and loving it!

camphobo01 asks:

Gary--what do you think of NASC chart. IPO went straight down and now straight up?

gsmith4:

And now down again the past few days. Like buying a lotto ticket at this point.

old_long_trader asks:

Hi Gary. I have a friend pumping RFMD. What is your take on the chart? Thanks.

gsmith4:

I agree with your friend. Strong looking chart.

feihin asks:

Gary, Are you working on or are there any new tweaks to the "CLASSIC".

gsmith4:

There are always tweaks to the classic. Mostly money management stuff. However, I'm also working with some new methods that show promise. Have to always have something in the pipeline!

dpil2121 asks:

I'm short AMD. Does it make sense right now?

gsmith4:

Always depends on your money mgmt of course. But, overall still weak.

CnyMark asks:

Hi Gary while both will likely prosper, which of the 800lb gorillas in telecom equipment LU or Cisco do you like best?

gsmith4:

CSCO, of course, since that's the one I'm long!

hoseheadd asks:

Is it now Motorola's turn to take over the chip market from Intel? The stock seems to be doing well lately.

gsmith4:

Yeah, it has been doing well. But beat out INTC in their home court? Unlikely.

Trench_rat asks:

GB, Do you think it is easier to handicap stocks or racehorses?

gsmith4:

Racehorses! With them there's only one "live" element. With stocks, you have millions!

dpil2121 asks:

How does the NXTL chart look to you? I see a breakout!

gsmith4:

DP, I think it already broke out, around the middle of this month.

JustMeAtTheSea asks:

Trying to learn your GBS method, .mostly paper trades. I have recently put a toe or two in the live pool and have questions. Do you ever/always look at the open price vs. the close on the breakout day action? Example for a short. Closed at 50. Next day gapped down to open at 30, but closed that day "up" at 40. Would you still take it as a short, other criteria being met? Thanks

gsmith4:

So what you're really asking is do I look at the "candlestick"? No, I'd still take it as a short. Sometimes, that means the bottom dippers just came in early.

dswtt asks:

Hi Gary, it seems that in the past week, my list of trade candidates has dwindled to near zero. Has your activity been at a constant pace, or are experiencing the same thing?

gsmith4:

My Classic stuff has been very minimal. And that's fine as the market needs to get things sorted out.

srlynde asks:

Can you recommend an on-line broker?

gsmith4:

I can, but I'd rather pass on that one. Just not close enough to it now.

mudsquirrel asks:

Gary, any thoughts on SCH?

gsmith4:

Broke a downtrend today, so some strength. But there are stronger stocks out there.

old_long_trader asks:

Gary,

James Cramer

said on

TheStreet.com

yesterday to hold all buying until after FED meeting. What are you doing? Thanks.

gsmith4:

I was buying this AM. FED...SCHMED!

techtrader26 asks:

Gary, how long do you usually let your winnings ride before taking profits?

gsmith4:

I always have a set target in mind. Usually 5% or so.

dpil2121 asks:

Do you ever play the additions to the indexes SP500 mc400 etc

gsmith4:

I look at them, usually when I'm bored. Never do anything with them though.

Icover asks:

Gary, have you been able to code anything within TC2000 to locate long (60 to 90 days) basing periods?

gsmith4:

On TC2000, check out my 5/3 col. Those are just about the only scans I use.

CnyMark asks:

Gary despite the Tricon and bottling spin-off, PepsiCo seems pretty range bound(despite nice move today). Where do you see it going?

gsmith4:

Yeah, PEP is dead money.

mdjnr asks:

What do you think technically about yahoo here?

gsmith4:

YAHOO has certainly been strong lately. My gut, and only my gut, says it goes higher. Not a trade I'd make though.

edshap asks:

What do you think of JBL after it's recent warning?

gsmith4:

Neutral. Wasn't as weak as I thought it would be.

o81367209 asks:

Gary, Is this Bethesda hot and humid weather helping your golf game?

gsmith4:

Actually, it's making the pool temperature for my daughters a lot easier to swim in at 6:30 a.m.

Porteram asks:

Are you able to beat the market on gigantic up days like today and yesterday?

gsmith4:

No, since I usually have some shorts going. On the huge days, at best, I'm just keeping up with the market.

gsmith4Icover asks:

Gary, I liked and went long WITC when it took out its intraday high on the first day of it trading. Do you trade IPO's using the same ideas that you wonderfully write about.

gsmith4:

I have dabbled with some Daytrading with the same method, but not usually with IPOs.

CnyMark asks:

Gary, while its a sensitive market, isn't Intel still a pretty solid investment, since AMD cant seem to stop shooting itself in the foot by missing estimates?

gsmith4:

Absolutely, for the long term it's a great stock.

camphobo01 asks:

Gary: IBD loves credit trust and is always hyping it on its weekend recommendations but it doesn't do anything. What does chart say about CRDT?

gsmith4:

Not a bad looking short -- if it breaks 27 it could easily move to the 40s.

wayward_1998 asks:

Gary, what average do you use for short term trading 13 enough ?

gsmith4:

You mean moving average? I don't use any. See my 5/3 column for details.

wheelman41 asks:

how long after an IPO does it take to establish a trading pattern that TA can evaluate?

gsmith4:

I think about 6 weeks, at least for me.

yusake asks:

What is the problem with Metromedia Fiber Network since its announced acquisition of AboveNet.com?

gsmith4:

Broken support, and probably overpriced to begin with.

ming___the____merciless asks:

Are there any tech stocks that are undervalued right now? Everything seems to be up in the stratosphere.

gsmith4:

Agreed, but honestly, there's still a bunch that have good charts.

JustMeAtTheSea asks:

What's your guess on the Fed action and market reaction?

gsmith4:

Plus 1/4 point. Market drops.

dianadel asks:

How about SUNW in the near term?

gsmith4:

I think up. Not the clearest chart, but okay.

Trench_rat asks:

You always speak about is "money management "...is this just Smith-speak for not staying for an extra beer and just getting out with a profit?

gsmith4:

Well, it's actually TWO extra beers, RAT.

TSCEllen:

Well, thank you everyone for joining us today! Make sure to check thestreet.com for upcoming chats! Look in the community section.