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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?


To: Zeev Hed who wrote (44669)6/16/2000 2:42:00 PM
From: MulhollandDrive  Read Replies (2) | Respond to of 93625
 
Then my question would be why would you assume the LEAPS position was hedging the shorts, it could just as easily be longs trading LEAPs to augment their long position, as I and many others have done in the past.

Right now I am looking at the psychology of the trading that is going on here, and my hunch is that "regret & remorse" would dominate. That is to say, stocks like RMBS usually to not attract buyers when it's heading down because the fear and anxiety (future oriented emotions) limit buying. Now granted, I'm sure that there still a few around that bought RMBS at height of the parabolic move up that may be looking to get out even, but my guess is that there is a much,much larger group of investors that "missed the last run" and see the split and Toshiba news as opportunities to establish positions. It will be interesting to see just how deep the retracements actually are.

bp