Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (66320)	1/9/2001 12:40:27 AM
From: Stephen	Respond to of 99985

greg ... fwiw ... about 5-6 months ago briefing.com reported they were hearing that NTAP was offering big discounts to maintain revenue growth and that it was hurting INKT. I didn't pay much attention at the time as it seemed to me they were addressing different caching markets. Nonetheless ...given whats happened to INKT & CFLO ... one has to consider NTAP if shorting is on one's mind. By the by ... I never did resolve the fundamental issues with the call ... Regards Stephen

To: Boplicity who wrote (66320)	1/9/2001 1:40:31 AM
From: KymarFye	Read Replies (1) \| Respond to of 99985

Though I agree that NTAP is at least as vulnerable as any high PE tech stock, and also that you will see numerous examples of similar formations on other charts in the sector (and related sectors - even, according to some, the whole composite), I think it's worth keeping in mind that the descending triangle, prior to breakdown, is a highly unreliable formation: Bulkowski gives it a 45% failure rate that he calls "shameful." That's not much better than a coin flip. If, however, you wait for the breakdown, then reliability is said to go up tremendously (failure rate reduces to 4%). If you look at NTAP's own chart, I think you may make out a number of actual or potential descending triangles (ones about as well formed as the current one, IMO) that, indeed, resolved dramatically to the upside.