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Technology Stocks : Cabletron Systems (CS: NYSE)

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To: LoLoLoLita who wrote (2533)12/4/1997 3:24:00 PM
From: Doug  Read Replies (1) of 8358
 
Hi David: I hope you are right. My momentum analysis shows we might have 1 more down day. The reasons follow. In June the sell off volumes were as follows 27m,8m,5m,normal. This slide pattern was different. First we had a gentle(insider)drop from $30 for a week followed by the slide. Vols were 15m,12m,10m(est for today),4m(tomorrow) and normal thereafter. Momentum curves are usually smoother than price curves. I therefore expect a very slight price drop tommorow to accomodate that volume. A 2nd price drop momentum curve is usually less severe than the first.In this case it was just the opposite and therefore more difficult to judge.
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