America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: Crystal ball who wrote (21316)	6/11/1999 7:03:00 AM
From: JH	Read Replies (2) of 41369

<Institutions not selling on low volume, means They are READY TO BUY.> I bought some June 100 calls yesterday at $9-1/8, expecting a bounce off of what appears to be a triple bottom. However, after looking at AOL again using two accumulation/distribution functions (OBV and CHKO), I am bearish. Both show an unmistakable trend of a net distribution (liquidation) since AOL's peak in early April. Both analytics show a divergence between the price (still too high) and the net accumulation/distribution line diving deeper and deeper. There is no evidence whatsoever that there is significant accumulation at these levels. One day's worth of selling on what seems to be like low volume DOES NOT provide any evidence that the liquidation trend is about to reverse. If the triple bottom breaks, my advice is - GET OUT!!! OTO, the theory that S&P500 indexers are currently unweight AOL, and that they may soon start to accumulate AOL to rebalance the weighting back to a "neutral" stance, may give AOL support. The buying opportunity probably lies in the $90 region, with yesterday's $105-1/2 becoming resistance.

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