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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TraderAlan who wrote (3608)	9/5/1999 8:22:00 AM
From: marketbrief.com	Read Replies (2) \| Respond to of 18137

hi alan, in my limited experience I've noticed that post-split, stocks zoom thru levels which were formerly major resistance... the only explanation i can come up with is that the bagholders are still thinking 1 @ 100 when they are holding 2 @ 50, so there's no desire to sell 50 even though they may want out at breakeven... it's a mystery. fwiw I can't remember to save my life what we paid for yhoo a few years ago, or egrp for that matter... guess i'll have to figure it out in 2040 when i sell... if they hadn't split I wonder what the heck I'd think of current "prices"... i believe ebay is around $750 a share now, didn't it split twice @ 3 for 1? ;-) ~Smart$

To: TraderAlan who wrote (3608)	9/5/1999 10:01:00 AM
From: Cash	Read Replies (1) \| Respond to of 18137

I would think a split might have an effect on "who" is in the market. Let's say DELL split 2:1, so now it's "affordable" for some investors, and "playable" for some traders. Obviously volume will increase based on the split itself, but how about volume increasing from new players. Also, if they are new "traders" in the stock (not investors), wouldn't they be more subject to be shaken out by the more seasoned traders in the stock? Just some thoughts.