Gary Gets Red Hot - TheStreet

As is the usual focus of this Friday column (or, more appropriately, the usual

intended

focus, as I have been know to drift into areas seemingly unrelated to trading, charting or anything close!), I'll look at some stocks in the news and some stocks on your mind.

Many questions on my favorite invention of the year,

Jim Cramer's

Red Hot index, or RHI. Ah, but maybe by this time next year, it'll be the RIP list. In that vein, here are three stocks that straddle that line: one 6 feet under, one 6 feet

over

and one recently bounced from the Red Hots by popular demand.

Technical Analysis: Join the discussion on

TSC

Message Boards.

First up,

Copper Mountain Networks

(CMTN)

, the only member of Cramer's RHI that I actually tried to trade. Typically, I went long -- thereby marking the top...

On the flip side of the coin is the stock I should have gone long with:

Qualcomm

(QCOM) - Get Report

. It really does take your breath away.

And finally,

Net2Phone

(NTOP)

, which was ousted from the Red Hots last month. Here's my view:

Many requests this past week for a look at the indices and averages. A few readers suggested looking at the index proxies, the

Nasdaq 100

tracking stock

(QQQ) - Get Report

and

Standard & Poor's Depositary Receipts

(SPY) - Get Report

, since I could also incorporate volume. As a bonus, I'll also throw in that newfangled

Internet HOLDRs

(HHH)

.

So what do we have? Murky, Down and Pending. (Soon to be joined by Sleepy, Doc and Grumpy.)

And finally, many requests for telcos lately, with

Qwest Communications

(QWST)

leading the pack. And it's a good chart to look at because it presents the dilemma that technicians often face with charts like this: Am I seeing the old lady or the young girl? (For background, see my column on

"Go-Dog-Go".) Let's take a look:

As you can see, you could really come to entirely different conclusions. That's why I keep coming back to a familiar theme: Money management and managing the trade once you're in it are the real keys to success. Entry and candidate selection are, of course, important. But, you'll be wrong a lot, so that's why what you do once you're

in

the trade is of utmost importance.

And so ends another silly week, where we can't tell celebrities from politicians,

Al Gore

from

Bill Bradley

or a good chart from a bad chart. But we keep trying.

Gary B. Smith is a freelance writer who trades for his own account from his Maryland home using technical analysis. At time of publication, he held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Smith writes five technical analysis columns for TheStreet.com each week, including Technician's Take, Charted Territory and TSC Technical Forum. While he cannot provide investment advice or recommendations, he

welcomes your feedback.