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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 687.57+0.7%Dec 10 4:00 PM EST

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To: sean sanders who wrote (5045)1/30/1999 8:24:00 PM
From: Elroy Jetson  Read Replies (1) of 99985
 
You asked how you could have avoided the tumble in EFII on 7-16-98.
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Two ways. First, you held the stock during the time they announced their earnings after the close on 7-15-98. Obviously someone expected better results. You can see this more recently in Nokia (NOK/A) and others which announce good earnings, but obviously not up to investor's fantasies. Every time you hold a stock for the earnings announcement you're taking a risk that has little to do with T.A.

Second, you were trading a stock with little volume. All it took was for one institutional investor to be disappointed and the stock tanked. Stocks with greater volume can help mitigate the impact of one large shareholder.
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