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Non-Tech : Amati investors
AMTX 1.575+1.6%10:28 AM EST

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To: Tim Chan who wrote (7012)12/16/1996 12:41:00 AM
From: Steven Sage   of 31386
 
Tim; all this means is that the ADSL stocks are being traded as a group within a sector. People are therefore reading way too much into the individual behaviors of the stocks. What is significant is that given that each acts as a leading indicator to the other; when one goes up big; you can jump into the any of the ones that have not gone up yet and they will eventual express the same move. This is why AMTX was a great short after all of the other ADSL stocks collapse except for Amati. Amati investors likely foolishly read into the delayed drop that Amati had something going for it that the others did not. In fact, it was just the typical kind of out of sync daily movement, but in sync average movement in the ADSL stocks. Knowing this should be valuable for future trading in these. E.I.; buy the one that is down the most and sell the one that is up the most; move between them all as the market dynamics play out. Currently, using this rule; ORCKIT would be the best stock of the bunch to buy; it is down the most.
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