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Technology Stocks : BMC Software
BMCS 0.00520-36.6%Nov 3 2:14 PM EST

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To: john dodson who wrote (1298)7/26/2000 11:17:57 PM
From: Doug   of 1492
 
John: review the SOX index to see how the Semi's did when that sector tanked 2 yrs ago.

There are distinct phases when a sector gets thrashed. These are

a: Earnings shortfall for 1 or 2Q's followed by downgrades all well spaced out to push the stocks lower each time. The
downgrades are usually Neutral or equivalent.

b: When all stocks are hit and downgraded, they enter a fear stage. The volume decreases sharply and bargain hunters appear.

c: In the next 8 weeks the stocks hold a tight trading band of +$2 at most.

d: One month prior next earnings the Analysts close to the Inside know how the Company has fared. The buying starts slowly and waits till either the 50 day ema or
a head and shoulder line is crossed on the up side.

These are classic patterns which good stocks that tank go thru. I saw ABT at $28 , its now $40. Check out ABT's doom and gloom Board. You need to be patient when a sector tanks.
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