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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Tammy DeRosier who wrote (21711)	6/23/1999 1:56:00 PM
From: Tammy DeRosier	Respond to of 34811

I was talking to Tommy from the Airport and I wanted to clarify his comment on CMGI. During the discussion on NETS, he mentioned that he was long CMGI and because the appearance is just a sound bite he wasn't able to explain his position. So here goes as we have gotten a couple of e-mails on why he would be long or like CMGI. On the regular chart of CMGI, the stock came down to the support line and held, giving a double top buy signal. The position was then initiated. The stock then turned around and gave a sell signal, violating that support line. Since the sector was oversold and below 30%, the stock was already down substantially from its highs, and it was option expiration week, a contributing factor to volatility, writing calls against the position made sense especially given the large premiums. So instead of selling the stock once the "wake-up call" level or stop/hedge point was hit, he sold calls to manage the risk. Tammy