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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: David Goodwin who wrote (11053)	8/10/1999 7:12:00 PM
From: S.C. Barnard	Read Replies (2) \| Respond to of 28311

From RB CMGI: (not me) I know of no technical analysts that are giving a buy recommendation based on momentum oscillators showing the market is over sold. The only people stupid enough to do that are the same large brokerage houses that downgraded Intel last year at the exact moment you should have been buying and are now upgrading it to a "strong buy" at the exact moment you should be selling. What we saw today was a short covering rally. CMGI has support at the 200 day moving average which is being tested. There is not enough conviction to move it one way or the other so it goes sideways, but that will change. A technical rebound is a "dead cat bounce". It happens when the market makers are up to their eye balls in stocks that are loosing value. Remember they are the buyer of last resort. On days when sellers far outnumber buyers they must provide liquidity, so if you want to sell they get stuck holding the bag. After a sharp decline they simply must unload all those shares before it gets any worse. So what they do is give a "buy on the dip" recommendation. Or they start buying it themselves. When the short interest sees strong buying they start to cover. Momentum players looking for a quick scalp trade join in and the last to join the "rally" are the bottom fishers. Longs who think this is turning point. The rally fails and the poor longs get trapped. They show up here in about a week or two wondering what went wrong. I'll say it again. Here are the rules: 1. Buy low, sell high. 2. Let your profits run, and cut your losses short. 3. Add to your winning positions, not your losers. 4. Don't fight the trend. 5. Don't fight the Fed. Pay close attention and you will prosper, break the rules and sooner or later they will break you. Right now pay close attention to the last 2 rules. When the news changes the trend will change. Till then any rally is a "bear trap", "dead cat bounce" or if you prefer a "technical rebound". They are good for a quick scalp trade or as an entry point on a short position. Nothing more, and nothing less.