Slop
Chunky gashes in a number of the
leaders.
Shoddy action in a couple of our Group
of Seven (see
my June 6 column for an explanation), SDL
(
SDLI |
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PowerRating) and Corning
(
GLW |
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PowerRating).
Meanwhile, the Naz definitively
punctured the top of its prior three-week zone.
“Learning
from your losses is probably the biggest key to success, because the losses
actually tell you what you’re doing wrong,” said one top trader
profiled in an upcoming book that I’ve authored with Marc Dupee, our futures
honcho.
Everyone
makes mistakes in this game.
If
you find yourself getting stopped out of position after position, you would do
well to do an analysis of each of your recent trades.
Did
you enter stocks that were extended by more than 5% from their most recent
basing area of at least six weeks?
Did
you enter stocks as price was breaking out above the top of a base, but on
volume that was less than 50% above its recent average?
An
analysis of this kind is sometimes difficult to do, yet the learning experience
from it can be great.Â
Incidentally,
it pays to always keep an eye on those newer names that you’re tempted to pass
up because you know nothing about them.
The
class of ’99 certainly was a bumper crop, when it comes to winning stocks.
Ariba
(
ARBA |
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PowerRating), Brocade
(
BRCD |
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PowerRating), Juniper
(
JNPR |
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(
RBAK |
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Sycamore
(
SCMR |
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PowerRating) were just a few of the rapid-growth names that came public
in ’99.
If
you were afraid to buy these stocks in ’99 because they were an “unknown
quantity,” you lost out on some bulky gains.
I
learned this lesson in ’90 when I passed on a young networker that was growing
earnings at a triple-digit rate.
The
company’s name was Cisco.
Though
many newer names, such as Exfo
(
EXFO |
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PowerRating), Sonus
(
SONS |
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PowerRating), and
StorageNetworks
(
STOR |
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PowerRating), are extended technically, they should be monitored
regularly, particularly if you’re a swing trader.
In
the bells Monday, Intel put in its fourth distribution day in the last six.
EMC
(
EMC |
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PowerRating) and Sun
(
SUNW |
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PowerRating) pulled back on lower volume following last week’s
breakouts.
Among
the names, Applied Micro
(
AMCC |
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that goes with its four-month cup.
Avanex
(
AVNX |
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Leader
Brocade
(
BRCD |
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PowerRating) was distributed, losing 6%.
Ditto
for Digital Lightwave
(
DIGL |
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PowerRating), off 11%.
Verisign
(
VRSN |
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PowerRating) put in one of the better sessions among growth stocks in the
base-building stage.