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Microcap & Penny Stocks : All American Semiconductor (semi) -- Ignore unavailable to you. Want to Upgrade?

To: Vendit™ who wrote (904)	7/30/2000 10:01:16 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 952

Technical analysis of support level is correct. But life is never that simple. Unfortunately, market makers' price movement is partly competition, partly their own inventory condition. It must be understood, that the market is not customer dominated. It is rather offered price which drives the market. Pull back to buy back shorts by a market maker. Nice move to sell excess inventory by a single market maker. Then there is the single day story, which effects all market makers. (Incidentally, all brokerages are having notorious profits when the market went down, making money when they buy back shorts.) SEMI was pulled back along with most other stock, due to the story that second quarter GDP number might trigger another Greenspan foolishness to raise rates. In reality, Greenspan is just jawboning. He is not going to risk his own reputation, to destroy the economy. He just tried to slow it down somewhat, due to the free flowing cash from treasury repo (selling by large banks) to Nasdaq. Excess stockholders' selling will create oversold condition, and market will have to have a nice move afterwards. We learned not to be too precise in technical analysis when we draw trend lines. More technical analyst drew blood on himself when the trend lines are predicting more than one day at a time. MicroTA (intraday by the minute) is the way to do technical analysis today, because of excessive daytrading by institutions.