Piffer OT - And Other Assorted Nuts Message Board

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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts

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To: Augustus Gloop who wrote (26295)	4/5/2000 11:04:00 AM
From: Doppler	Read Replies (2) of 63513

I've learned another lesson about BP's. Biomedics was at 16% a couple of weeks ago. Everyone said it can't go lower. Then it reversed up. Great buying op right? WRONG. It's now at 12%. The other thing to remember is that BP's have NOTHING to do with absolute prices, but only with relative prices. In other words prices could go WAY up, then virtually every stock could correct a little, leaving you with a very low percentage BP, but high prices that are still subject to going lower. If every stock in a sector goes up just enough here to get into X's, then prices drop sharply, we would end up with the same low BP, but way lower prices. By the same token prices could shoot way up for all stocks in a sector, then all of them could correct into O's just a little bit, and you would have very low BP's with high prices. Does that make sense. In theory, BP's are helpful with overall short term direction, not intensity or longer term movements. Jeff

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