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Technology Stocks : 3DFX

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To: heidi medline who wrote (2322)4/22/1998 12:43:00 AM
From: Eric Hautemont  Read Replies (2) of 16960
 
Saw a good plausible explanation today in a recent post on Yahoo's TDFX msg board. The guy argued, and I would agree as I was buying right when the stock dropped from 32 to 30 then came back up in the last 20 minutes of the day that this is purely the result of traders/MMs seeking to trigger STOP orders then picking up the shares cheaply on the way back up. Given that a lot of people put their STOP 10-15% down from the price, and that this is often the magnitude of the gap, this seems like a plausible reason.
Eric
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