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To: Nichols who wrote (8836)	8/2/2001 1:35:49 PM
From: Jacob Snyder	Respond to of 10934

Compare the 3-year chart of NTAP and WCOM, especially the volumes traded in various price ranges: siliconinvestor.com WCOM has been in a bottoming formation since late 2000, in a horizontal range, bouncing over and over for many months at 13.5. Notice that volume in that bottoming period peaked at the lows, and has been continuously higher than in the late-1998 to mid-2000 period, when stock prices were far higher. This chart tells you that the weak hands are probably shaken out, and (assuming we don't get a worldwide recession), the stock has probably bottomed. Buying at 13.5 is safe. Compare that to the NTAP chart: siliconinvestor.com Notice that volume peaked in February 2001, as we broke support at 50, a price far, far above today's price. Volume has been declining since then. Volume was lower in April (an intermediate bottom) compared to February. And volume was even lower in July, as we set a new lower low. Yesterday's volume begins (just begins) the process of shaking out the weak hands. If July was THE bottom for NTAP, we have got to bounce there repeatedly, over a period of months, before a firm base is established. Buying this rally is not safe. Even buying NTAP at 10, is less safe than buying WCOM at 13.5 (I'm speaking strictly of chart patterns). The fact that a hint of good news sends the stock soaring, indicates there is still too much optimism. When good news is ignored, that will be the bottom.