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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: voop who wrote (4119)	1/9/2000 11:33:00 AM
From: Guy Gordon	Read Replies (1) \| Respond to of 24042

RE "Have you ever seen a company who after forming a steeper channel i.e. JDSU and Q form a third (more steep) channel? If not, then the tops of the first steeper channel may have more validity." The short answer is "No". Sometimes a stock that is moving in a medium or long-term uptrend channel breaks out the top and forms a new channel heading up at a steeper slope. This is extremely bullish, and is what has happened to JDSU, SDLI, and several other photonics stocks. I don't think I've seen a stock break out to form a third, steeper channel. Several times I've seen them try, only to become exhausted and fail. Very steep slopes are almost impossible to maintain. A stock that doubles in a few months almost has to fall back to its 50-day MA. If it didn't, it would soon be worth more than the entire market. Geometric growth is an amazing thing. But you have to get in early, because it can't go on forever.