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To: Sir Francis Drake who wrote (2610)	7/20/1999 6:52:00 PM
From: CanynGirl	Read Replies (2) \| Respond to of 10027

Morgan, FYI, I wanted to get clarification on interpretation of the iwatch charts, so I went directly to Thompsons with your interpretation and asked them to verify. Here is their response: The explanation of Super Messages posted below is incorrect - it's missing the finer points behind I-Watch and why it's an important trading tool. The Super Messages are only PRE-trade data - thus, the below conclusion that "the triangles did not cross the price lines - that means, they never actually bought." is incorrect. It is not possible to tell whether or not a Super Message translated into a block transaction based on I-Watch charts since there is no post-trade data included. The only post-trade data on I-Watch is the Reported Trade Pie Chart. The data on Thomson I-Watch is only part of the trading picture and should be used in the broader context of the trading session. The interpretation of the data is unique for each stock/sector. Logically, a bid represents an offer to buy stock so it should put upward pressure on the price while a sell offer theoretically, will put downward pressure the stock. The side of the market that the super message is on, marks the side on which the trade is being initiated. When a broker offers to buy 100K, he/she is actively looking to attract the attention of someone willing to sell. Typically, the aggressor of a deal ends of paying the premium so if the broker really wants to buy that 100,000 shares, he/she will need to strike a deal with the seller which will most likely result in some type of upward pressure on the stock. A good way to think about the I-Watch data is as a basic measure of supply (red triangles) and demand (blue triangles). As the price goes up, the number of people willing to sell goes up as well - supply (red triangles) increases. Thus, as a stock's price increases the number of people willing to sell into the rise increases, also. In the scenario when the stock is moving higher and there will often be more red triangles than blue - the bidders do not stand to gain much by advertising that they want to buy stock - after all, who doesn't? The sellers, however, can attract a lot of attention by offering stock. Also, you'll notice that while, the amount of stock for sale will sometimes prove insufficient to counter the buying - it often works to create a cap on the stock's trading price. I hope this helps clear things up a bit. Please let us know if you have any further questions/comments. Rebecca Lennon Senior Analyst Thomson I-Watch www.thomsoninvest.net/iwatch/ -----Original Message----- From: Nobody [mailto:nobody@betel.thomsoninvest.net] Sent: Monday, July 19, 1999 7:23 PM Subject: From IWatch (Comments: I found this posted on Silicon Investor. I was wondering if you could clarify if this is indeed how to interpret your super buy/sell messages. "The super buy messages (the blue triangles) express big limit orders from institutions. But the triangles did not cross the price lines - that means, they never actually bought. They were interested in buying lower that day, that's all. They never actually bought." Thank you