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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: SusieQ1065 who wrote (59369)	7/7/2002 10:30:38 PM
From: SusieQ1065	Read Replies (1) \| Respond to of 208838

QLGC.. Play Description Sunday, July 7th, 2002 Short-covering was the name of the game on Friday as those investors that hadn't already left for the weekend went on a buying spree in response to the fact that there was no terrorist attack over the 4th of July. The NASDAQ-100 shot higher by more than 6.5% on the day, so any idea of this being the beginning of a strong summer rally need to be tempered with the fact that it came on rather light volume. But that doesn't change the fact that QLGC vaulted higher by 6% itself, bringing it within 20-cents of our $40 stop at the close. We debated about dropping the play this weekend, but after reflecting how quickly short-covering rallies have failed lately, we decided to give it one more day before pulling the plug. If our stop is broken on a closing basis, we'll take our lumps, but until a major resistance level is broken, the charts are still telling us to short all rallies. The only valid entry strategy for the play right now is to enter on a rollover from current levels. That entry would look even better if it occurred in the midst of a renewed broad-based Technology retreat next week.