To: Sully- who wrote (6053 ) 3/4/2000 7:36:00 PM From: Jim Willie CB Read Replies (1) | Respond to of 35685
TA on GMGC (Genl Magic) quidproquo dinner in SteelTown - Genl Magic is breaking out with gusto - money flow is brisk, and growing so rapidly in the last few days that it might not be sustainable - Relative Srength is approaching extreme levels, nearing 80... in early Feb it shied away from 80 also and dropped 25% in three weeks... any followthru higher and you got really extended RSI, most likely to pull back - daily stochastic is crossing over as we speak, in progress now... but it might be coinciding, and not crossing... the next couple days will tell about any crossover - volume is strong, but maybe too strong (if that is possible)... as in, looking like a volume spike peak that is unsustainable - upper boundary of recent upchannel has a slope exceeding the lower boundary of that upchannel... indicates volatility growing, but nothing unusual... just worth mentioning - breakouts are hard as hell to call for their end and climax... they are dangerous as hell to short... they tend to extend farther than the arrogant pundits claim to know... but this little puppy gem is breaking out - on Friday the breakout really happened, holding 60% of its gain - I dont pretend to say where it will stop, but it looks like it might not extend too much farther (maybe like 17-18)... its RSI is at/about the magic (get it?) 80 level that is historically seen as the peak... also volume hasnt gradually grown here, but rather has jumped sharply - clearly something lit a fire under its tiny ass... small company here, real small - when this tiny gem stops lifting, look for support at roughly 10 again, where old ceiling lived, which happens to be where the shorterm 18day Moving Avg also lives... of course it might hold much of its gapless gain, like 5/8... but this is microcap, and microcaps that become volatile go to the moon and give up large chunks... large institutions just dont participate much in these guys, thus yielding unstable price charts - I noticed GMGC has yet to turn profits... so a wrinkle enters the equation of unknown future profitability levels... nothing more volatile for upside potentials for ambiguitious ambiguity unknowns for earnings levels as with the last INFY analysis, this has been written after zero news items examined... therefore objective as a cold stone I would short this guy after a few more updays sort of serious, not really, could pick up 25-30% profit in three hours on a short position this stock is extending the breakout, but not for much longer, then look for a hard characteristic microcap pullback / Jim