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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (37159)	6/5/2000 5:36:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 77400

Sorry, I can't help you there. I try not to make recommendations. Generally however I'd stick with well known larger cap techs that have strong business models and are reasonably priced. OG

To: michael97123 who wrote (37159)	6/5/2000 9:33:00 PM
From: username	Respond to of 77400

I see support for CSCO at 46 and change, not at 50. 50 is more of a "psychological" support level, primarily because it has been heavily reinforced on CNBC, and average people who are long sometimes think in big round numbers. Remember that the CNBC people get a lot of their TA information from traders. Traders, as a general rule, understand what will happen in the market. I'm talking about the traders that trade for the brokerage firms, not the traders that are day trading in Des Moines or Seattle or Austin. The guy that executes the trades for Knight, or Goldman, or whoever, is called a trader. Those are the guys that CNBC asks about market movement. You have to remember to ask yourself, "If I were a trader, and Tom Costello asked me what was going to happen tomorrow, and I knew, would I tell him so he could announce it to the entire world?" <G> Personally, I wouldn't. Technically speaking, many traders would be concerned about that gap that appeared last week. Gaps don't bother me personally, but many traders look at them. You also have to remember that Joe Average who is long CSCO will not put out a trailing stop. He won't tell his broker to sell it if it goes down to 47 9/16. He'll say "50". So you can bet that if the stock gets near 50, it will break down through 50. If that happens, it could be a buy, not a sell. Short term traders are good for clues on entry and exit points, and the fact is that if you are planning on holding a stock for 5 years but you haven't bought it yet, you would be happier if you get it two bucks less tomorrow thanks to some trader saying it would dip short-term. The fact that the stock stopped at 50 bucks last week was not an accident. By the way, if anyone was watching CNBC this afternoon, Ron Insana had a TA guy on named John Curry of Sterling Financial Investment Group. John Curry is a real, real sharp guy. I pay attention to him when I see him on CNBC. Thanks, eom