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Technology Stocks : Extreme Networks, Inc. (EXTR) -- Ignore unavailable to you. Want to Upgrade?

To: RR who wrote (390)	10/22/2000 5:44:46 PM
From: minorejoy2000	Read Replies (2) \| Respond to of 770

Hello RR I wanted to post some responses to my questions on Ragingbull.com thread. I've been appreciative of Tim's insights and wanted another separate intelligent perspective. This is some recent feedback to my questions regarding the worrisome double top: <<Giaco: The Nasdaq had a double top back in March. As we know, things got ugly. Following labor day, the Naz hit a second, lower double top: again, things got ugly - very ugly. You are right about CIEN, it seemed to fail on a second top a few days ago but then moved right ahead (though volume was a bit weak). To tell you the truth, I don't know what percentage of double tops turn into free falls but I have suffered at times by ignoring technical analysis because I had faith in fundamentals. I agree that EXTR has very strong fundamentals but with stocks at very high PEs, it's difficult to know whether the fundamentals support the stock price. Technical analysis may offer a more succinct view of what the market thinks. It looks to me as though EXTR has a good deal of support around 90 so I may wait to see how things go around there. A breach of 90 would be a confirmation of the double top (that happened briefly but given the erroneous press reports I'm giving some extra leash).>> Then, <<Giaco: I should note that I just re-checked my Technical Analysis Explained by Martin J. Pring and it reminded me that "The main characteristic of a double top is that the second top is formed with distinctly less volume than the first." I'm relieved that this is not the case with EXTR. The second top appears to have come on somewhat stronger volume than the first. See the following chart: askresearch.com Here's a perfect example of a double top for CMGI. Notice the volume decline on the second top: askresearch.com Any feedback needed here. It's not an active thread. We need both intelligent questions and responses. Thanks. Mino