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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (14635)	10/10/2002 1:46:55 PM
From: Elmer Flugum	Respond to of 17183

Sam & John Carragher, investors.com Volatile Weekly Swings Marked EMC's Summit By Jonah Keri "Smart selling takes many forms. Sometimes an obvious climax run presents itself, or a cluster of a new highs on low volume. In other cases, it takes a keener eye. Take EMC Corp (EMC). The computer data storage giant launched a monster run-up in late 1996. When a stock's going well, institutional investors sprint to get a piece of the action. How can you gauge their interest? See if your stock finds support at key levels such as the 10 week (50 day) moving average. In a good market, a leader attrats buyers when it tests that kind of threshold. EMC rode its rising 10 week line throughout most of its four-year 3,300% advance. On the rare occasion it tested its 40 week (200 day) average, EMC bounced back above it, surging higher. Another feature of EMC's strength? Sound bases with narrow price and volume swings, just the kind of action you like to see. The picture started to change as the NASDAQ topped in March 2000. EMC fell into a new consolidation late that month, correcting along with other techs. But its wild 31% swings the first two weeks of April, 2000, portented danger. Wide and loose bass rarely work, especially when the market stops cooperating. Still, EMC bounced off its 40 week line, (late May 2000) to a new high. The stock showed uncommon strength as it continued to rise, brushing off its tech cousin's troubles as it notched new highs. After hitting another peak in September 2000, the stock slid into what looked like another base. Only this time, sell signs started stacking up. In the week ended Oct 6th, 2000, volume surged to 63 million shares, heaviest since EMC's June breakout. A down week on the heaviest trade since the breakout is a key signal. So is a stock forming a late-stage, base, something EMC tried to do. Over the next few weeks, EMC logged several more wide and loose weeks, including a 26% swing the week ending Oct 27, 2000. A decline may have been expected given the market's correction. But a failing stock can still show strength if its Relative Strength line keeps rising or levels off. EMC's RS line headed south, meaning the stock was underperforming even the shaky S&P 500. The week ending Dec 15th, 2000 sealed EMC's fate, as the stock dived 22% on massive trade, slicing its 40 week moving average."