Cents and Sensibility - Kimberly and Friends' Consortium Message Board

STOCKTALK

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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium

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To: Autumn Henry who wrote (49172)	12/21/1999 8:43:00 PM
From: stan s.	Read Replies (2) of 108040

TALK, hi Autumn, a couple of points. TALK is not at a new high. It faces meaningful resistance around 27-28. I do agree that many shorts were caught flatfooted by the weak nature of the chart. If we're lucky enough to face that test tomorrow that point would mark a 12-13 point move in 2 days...on what was a 15 dollar stock. It's no slam dunk that it will break and hold tomorrow. It was unable to break lesser resistance today at 19 then 19 3/4. It broke above after hours which is a whole new ballgame. I held because I've played TALK before, I like what I know and I think the move up may continue but I just think you should understand the situation. My guess (way too early to say) is that I will sell a third or half on a gap and then watch for an reentry and double up if the stock remains strong...but experiences a normal dip. As far as how to play the potential gap. The general consensus is that if a stock holds that initial opening gap...for 20-30 minutes, it will move higher. Most of the time (not all) you're safer to wait until the initial surge is complete and then wait for a basing if you think it has held....or let it gap, base, move higher and then buy the dip, with the assumption that it will test the earlier high. Remember lows are often mid morning, mid afternoon. If it gaps on poor volume....wait awhile cause it likely won't hold. Having said all this...the above is essentially a crock and you just have to follow your instincts. Here's a url on how to play gaps but remember none of it is foolproof but there are some ideas here. pristine.com Anyway this could be moot, have to see how premarket looks. Good luck. Stan

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