t2,I believe we are starting to break to the upside again.
Stock held very well at 225 support, while Naz and
DJ were tanking. It is now breaking though upper resistance
at 230.5- 232.5.
I think technically this is a pure bred!!!
-Selling volume dried up at 225 showing good support.
-money flow is starting back in, strong.
Stochastics and MACD are turning up again.
If we break 232.5 it will be smooth sailing to 236+ at the
close.
Then on to 245+ tomorrow. We are following your scenario
to a T.
I have reluctantly <vbg> decided to hold my position
overnight. May be even through the weekend !!!( wow, I am
going to have to sweat this one out !!).I may have to ask this thread frequently through the weekend for moral
support.
I believe this is a must own stock in networking and all
sorts of people who didn't get in at the lower prices
will decide to swallow hard and bite the bullet.
That proposition will be easier to digest when they consider
that Mar 10 there will be a split, always a positive for
this kind of stock.
Especially those that have options expiring tomorrow, will
scramble to cover their a**es .
The Feb 2 rate hike is built in the market. The last 3 days of Jan. maybe
dicey but I think it is smooth sailing from now till then.
Lots of money on the sidelines waiting to come in, into fewer and fewer leaders.
JDSU is such a one. It will almost take the place of LU for a while, perhaps.
TA
To: t2 who wrote (4793)
From: t2
Thursday, Jan 20, 2000 6:50 AM ET
Reply # 4794 of 4828
We should be at 280 by the time earnings are released. I have been right in the last couple of months with my aggressive
predictions (maybe i was even conservative). I will try my luck again.
I won't mind if someone posts next Thursday to tell me how off base i was. However, i fully expect to see 280.
My rationale:
Tremendous momentum and it is growing.
Stock now has developed a QCOM type of image among the
media. I believe it is even better considering all the broadband chatter and component shortages. It is also developing a
Cisco/Intel image.
Those contemplating taking profits will think back to the strong gains experienced by Cisco for years, thus reducing selling among
institutional investors.
Even if earnings only come in line, the conference will
cite capacity constraints as the reason. The risk of a sharp price drop if they don't report a blow out quarter is small. They will
talk about how capacity constraints held them back and how they opening up big facilities all over the place. This anticipation by
the market will mean that investors will not get jittery about selling ahead of earnings. Remember last quarter how the earnings
were better than expected but people were tossing around big whisper numbers. The stock dropped initially afterhours but then
took in a big way the next day (and even late afterhours trading).
Based upon the above, we will see a big drop in the amount of stock for sale and an increase in demand right up until earnings.
This imbalance will of course be corrected with some serious price gains to the 280 range. In addition, the shorts will get blown
away!
Good Luck
(the above is all --- IMHO of course)
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