MDA - Market Direction Analysis Message Board

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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 662.72

+0.4%

4:00 PM EST

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To: HairBall who wrote (39622)	2/10/2000 6:11:00 PM
From: StockOperator	Read Replies (3) of 99985

LG, "I noted that CMRC has traded today at or below the low on 1/12. I agree it is a significant price action area for CMRC. However both that low and today's low are more than a fifty percent hair cut off the high put in before the end of last year. Why do you think that a break below the low on 1/12 would be more significant to the b2b sector than the haircut CMRC has "already" received since its high last year?" CMRC is one of the rising stars in the b2b area. Any significant break in its pattern would not necessarily bode well for the entire group, since most stocks tend to trade according to their overall sector. Of course I am going out on the limp by implying overall weakness in this group by just looking at this one particular stock. However, it is such a major player. You are right about the haircut already received. Not a pretty picture for anyone that bought near the $300 area. Let me just say that the reason I mentioned this particular stock at this time is because the overall pattern that has developed has placed prices in an overall "breakout or breakdown" position. According to my read here the already 50% haircurt will get either larger or smaller based on what this stock does right here. BTW, did you see the last 60 min bar for the stock, perhaps the beginning of this move. My own personal expectations for this stock if this is indeed a rally point would be to see a significant move tomorrow with the highs roughly in the 170 area to cap of the week. If this happens I think this stock is going to make a run at its old highs but is going to run into serious resistance in the mid 200's. Of course this is all speculation. But I can't think of a better name for what we do all week. Regarding stocks that I believe have bullish chart patterns. I mentioned VIAD some others are LTNX, NXCD. Even CMRC is bullish in the sense that it has to breakout in some direction here. That direction could be up. Look at stocks like PLUG and SIFY or perhaps AETH and SNWL: which are on an absolute tear this week. These are all stocks that I have tracked from their IPO simply because that's where the action is. My whole approach to the market especially when the patterns for the major indices appear indecisive has been to try and break things down to a stock by stock basis. These are, however, crazy times we live in with such historic divergences. I hope I answered your question. Regards, SO

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