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Technology Stocks : LSI Corporation

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To: Andy M. who wrote (12466)5/17/1998 3:16:00 PM
From: shane forbes  Read Replies (1) of 25814
 
Andy:

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RE: The only possible fly in the ointment here is the old "someone knows something that we don't" line. But that seems hard to believe in this case

Have you noticed when stocks go down, people always try and rationalize. Among many of the reasons I think the typical reaction goes something like this chronologically:

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first few points down
- "normal" pullback

goes past first support level
- "smart" money selling
- somebody knows something

goes past next support level
- fill in your own (99 possibilities)

sharp dip in price
- world is going to end
- nuclear war for example
- USA is going down the tubes

consolidates at support level
- rumors of a buyout for LSI
- stock buyback

sinks a bit more on light volume
- LSI is a dog
- LSI sucks
- LSI is a piece of shit

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By which time everyone has lost interst and the posts on SI drops dramatically.

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Shane (been there done that - recognition is the better part of valor)
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