The Prudent Thing To Do
Special
thanks to Vincent Mao for covering my pieces yesterday while I was
schlepping back home.
It
was great seeing you all at TradingMarkets 2001 over the
weekend. You all made me feel very welcome and comfortable throughout
the entire conference. Thanks,
and I hope to see you next year!
Now getting back to
business! (tough as it is with the slight jet lag coming back from
the West Coast,
but it has to be done, and quite honestly feels good to be back at the
desk.)
My timing composite is still
showing a cash position is prudent.
However,
we have received a number of follow–
through days over the last couple of weeks,
which is showing there is some promise in the markets turning. We
still must factor
in
the fact that we began strikes against the Taliban
on
Sunday. With that said, let us remain cautious with the markets and
continue to trade accordingly.
Telecommunications equipment
company Gentner Communications (GTNR)
is forming a high–level
ascending symmetrical triangle. The company is showing some nice
earnings growth over the last four quarters (27%,17%,25% and 29%) and
a 5 year growth rate of 73%.
I know this is a blast from
its past, but when I flew out of New York’s JFK airport I saw a Krispy
Kreme Doughnuts stand there. I was tempted,
but did not indulge. However the company is showing a sweet multi-week
double bottom. The company is also exhibiting some nice growth
(40%,167%,43%, and 67%) and a robust 5–year
growth rate of 35%.
Among the exchange traded
funds, the Semiconductor HOLDRs (SMH),
after a brief pullback off its lows,
look poised to resume the overall trend downward.
Remember that all securities
are risky. In any trade, you should always reduce your risk by
adjusting position size and placing open protective stops where
you will sell your long or cover your short in case the market turns
against you. For an introduction to combining price stops with
position sizing, see Loren’s lesson, Risky
Business.
Greg