SAP A.G. Message Board - Msg: 5205485

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Technology Stocks : SAP A.G.

SAP 240.02

+0.9%

Nov 26 3:59 PM EST

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To: DownSouth who wrote (1457)	7/15/1998 3:58:00 PM
From: mauser96	Read Replies (1) of 3424

I think CSCO and MSFT are both earnings driven and momentum driven. The latter means that many of the purchasers buy them only because of their relative strengths and are really not interested in fundamentals. I think you can tell momentum stocks sometimes by the chart pattern where there will be fewer of the normal dips. A momentum stock requires some good news to get the ball rolling, so most of them have good earnings increases or at least a good "story". Of course there is no way to know for sure, since the true motivation of market participants is unknown. Any speculation about motivation is a guess. Actually, a good bit of the time buyers and sellers hide their own motivations from themselves, making emotional decisions which they then justify by some sort of rationalization process. A reasonable number of momentum players is fine since they tend to decrease volatility, but if there are too many when they all try to leave at once it turns into a stampede.

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