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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Compadre who wrote (16285)	6/7/1999 11:51:00 AM
From: StockOperator	Read Replies (2) \| Respond to of 99985

I don't have much experience with penny stocks like CMPD. Can you tell us your experience of what happens to these stocks when there is a sell off in the markets? In other words, how well do they track the markets, and which index are they most likely to follow? Jaime, That is a good question. My answer to that would be no different for a two dollar stock like CMPD or if you we're asking the same question about a $50 Nasdaq stock. Although, stocks in general (especially the more established ones) tend to move in unison as a group, as sectors move in and out of favor. Stocks like CMPD which are experiencing TECHNICAL breakouts can move totally independent of what the market overall is doing. To prove that all you have to do is wait for the next serious move in the markets, whether up or down, and you will surely see a basket of stocks that are moving contrary to the overall direction. I think it is also fair to make the point that I use the word "technical" simply because that is the world I live in. As we all know technicans belief that the fundamental info is reflected in the current stock price and that of course is subject to change as new information is disseminated. These technical breakouts usually coincide with a dramatic change in investor perception. In the case of CMPD the company recently received FDA approval for a much anticipated product. What I think will continue to drive this stock will be the anticipation of a signed marketing agreement with some major player. So I do believe this stock is on a course all by itself. I hope that helped. SO