To: Joseph Silent who wrote (3306 ) 8/9/1999 5:58:00 PM From: Sir Francis Drake Read Replies (2) | Respond to
Joseph, I certainly was taken aback by how little support there was at 48 1/2 - though I still think there was capitulations sell-off at 35. It had all the hallmarks (or at least 3 out of 4). However, as I wrote in a post on capitulation, there can be circumstances under which a stock will decline even after capitulation, namely two: a)fundamentals have changed, so even hardcore LT B&H start selling, and b)there is massive short-selling. Under either of those circumstances, the stock will keep sinking - a short doesn't need to own the shares to sell - so the fact that most "real" sellers capitulated (longs), doesn't stop the selling pressure. What am I supposed to think? After all, I notice that FBCO is selling like crazy. Am I to conclude that these are individual sellers who didn't get out during the capitualtion? All selling through FBCO? Hmmm...
