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Strategies & Market Trends : DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (215)	6/6/2001 3:56:00 PM
From: -	Respond to of 565

Well, there is only one thing that will hold a stock up: buying! The market has already 'expected' the news they getting today (several months ago), so it is "priced in" as they say. Despite that, the news today has enough of a harsh/fresh edge that it is likely to cause some institutional investors (mutual funds, hedge funds, etc) with large long positions in HWP to do some "lightening" of their positions - sometimes called distribution (professional-level selling). Generally, in this kind of situation (only modestly bad news) they don't like to jump right in and show their hand... they tend to move in slowly over a day or two (otherwise they get the "fire in a theatre" effect). Anyway based upon today's statements we'd expect to see a bit of that kind of pressure on the stock for a day or two... but maybe not enough to take it to $25, or even $27. We may end up taking a quarter point, half point, point... whatever it gives us. The way we manage our stops, once we enter they're like a ratchet, locking in any gains minus a small margin which is based upon volatility. It could easily continue to find support here, if it does we'll just blow out of it. -Steve