Folks, maybe a first today: I have no personal anecdotes. No funny quips. No little stories.
Oh, don't get me wrong. I have plenty to talk about, but we'll get to all that next week. For now, I'm on edge, quite frankly. Diana's swim season boils to a bubble this weekend; Nancy is out of town for two weeks; and the pressure is on for me to not be dorky on TV!
Just too much to think about, quite frankly, so I'll let the charts do the talking. As usual, all questions go to
firstname.lastname@example.org, along with your full name.
CAM Can't -- At Least, Not Yet
I enjoy your column very much for its didactic quality. What do you think of Cooper Cameron (CAM) ? The oil-service stocks should have some good quarters in Y2K. -- Dan Dragonetti
For More Info, See Jack Be Nimble
I enjoy reading your column and couldn't be happier that it's now published five times a week. I recently saw reference to a book regarding Japanese candlestick chart techniques. Have you read any such books? Is it a valid technical theory? Could you write a short description of candlesticks and how the Japanese use them for TA? -- Gary Wong
Thanks for the nice words, Regarding candlesticks, I am self-taught, my education coming primarily from experience. As for using candlesticks, though, I do use them, but only as a "contributing" indicator. That is, a "hanging man" or "dark star" influences my decision to go long or short, but not to a great extent. However, I must admit I like charting with them, as they do help fill out the entire picture.
As for a description, entire books have been written on the subject, and with my limited knowledge, I certainly couldn't do the topic justice. Check out
www.traderspress.com, however, for a plethora of books on candlesticks, and a wide variety of other TA subjects.
GSTRF Ready for Orbit
I'm new to TA but am always interested in your take on various stocks (especially the ones I own or plan to own). GlobalStar (GSTRF) looks poised to go higher after a tough time awhile back when its 12 satellites blew up with the launch vehicle. Saturday, it got four more birds up. MACD moving average convergence/divergence looks great and trend line looks about to be broken to the upside. Volume ... perhaps another story. I'm thinking the next Qualcomm (QCOM) - Get QUALCOMM Incorporated Report! What do you think? -- Jackie Pagni
GEMS Not So Polished
I am a technical analyst who focuses on underpriced and out-of-favor stocks with good basing formations and improving technicals. One that I am currently playing is Glenayre Technologies (GEMS) . The weekly chart has broken to the upside from a long consolidation pattern and is currently testing the 200-day moving average atop its Bollinger Band. The breakout was on extremely heavy volume showing great accumulation. Could you please give me your opinion on GEMS and your price target by year-end? I'm looking for 8 to 10 within six months, but what do you think? My entry point is 3 3/4. -- Kevin Ward
Just a Short Rest for MPDI
Could you have a look at Microwave Power Devices (MPDI) ? It's had a huge runup lately, and I wonder if it still has room to go. -- Paul Oberlin
RCNC Ready for Something
Could you look at RCN (RCNC) with some of your astute TA? I grabbed 100 on a broker's recommendation. It looks like there's resistance at 40, but is it going higher? -- Steve Konen
Corn Dog Overload
Can you take a look at Worthington Foods (WFDS) ? They sure make good meatless corn dogs! -- Steve Andersen
Take Some Profits Already!
What do you do with something like Metricom (MCOM) ? I'm long from 10 but think this is going to get better long term. Take half or one quarter? Take it all and say thank you? Leave it alone and see where it is two years from now? Knowing when you are wrong and taking a loss is a lot simpler than answering when to take that big one when you get it. -- Jim Archibald
Getting High on New Ideas
If I read you correctly, you once mentioned in passing about looking at new highs for ideas. Did you mean intraday or closing highs, and how good a source of ideas is this? I've been choosing some stocks from the new high list, and if I'm smart enough (or lucky -- which is much more likely), they seem to follow up the trend -- even if it's for a point or so. From the recent list was Boston Scientific (BSX) - Get Boston Scientific Corporation Report, Gap (GPS) - Get Gap, Inc. (GPS) Report, Tiffany (TIF) - Get Tiffany & Co. Report, Tyco International (TYC) , Hitachi (HIT) . Would you choose any one to review? -- Marc Lerner
If you believe that the stocks most likely to go up are ones that are already strong (as I do, by the way), then the new-high list is an excellent source of candidates. You might want to parse this list, though, by the stocks that have made new highs AND have solid increases in volume to go along with their recent gains.
I always look for closing highs, and a great example of that is TIF, which made a new high recently on heavy volume. And in this case, the stock has kept on going.
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 at