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Technology Stocks : KLA-Tencor Corporation (KLAC)
KLAC 1,194-1.1%Nov 7 9:30 AM EST

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To: orkrious who wrote (1469)4/13/2000 7:39:00 PM
From: Jerome  Read Replies (1) of 1779
 
A sinister pattern is in the making.

1) a company beats estimates (MOT, GSNX KLAC)
2) stock rallies in after market
3) stock opens on the upside
4) stock sell off begins a few hour into the trading day
5) stock collapses near the close
6) conference call indicates bullish outlook

The problem with this is that as soon as a pattern is recognized (two to five times) people try to capitalize on it and things go terribly wrong. (they sell on the rally and the stock keeps moving up)

Although I don't like this excessive volatility I would be far more concerned if the outlook was poor.

Regards, Jerome

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