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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (10608)	7/16/2003 10:46:01 AM
From: Return to Sender	Read Replies (2) \| Respond to of 95487

Gottfried, one of the best trading rules I have seen is to avoid making a trade at the open. I think the same can be said for after hours. Trading volume is lighter and it is easy for the market makers to move stocks much higher or lower depending on the quality of the news that is effecting trading. It is much more difficult to keep a gap either up or down from not being filled. As we certainly have seen these last few days. Of course the INTC news was very good even if the company did not raise capex so there is every reason at this point to still expect the market to buy the dips. Regardless I have been burned enough to believe that either after hours or morning gaps should not be traded. Chasing the gaps higher would not have been a great idea this week. RtS

To: Gottfried who wrote (10608)	7/16/2003 12:59:12 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95487

Gottfried, You bring up an interesting point. Certainly this is not the first time a dramatic change has occurred between ah trading at night and stock action the next day. There seems to be a pretty healthy market in terms of number of shares traded ah, so I wouldn't think they are all "amateurs". It might be just the other way around - professional traders trying to capture some gains on emotional responses to the earnings announcements. It started last week and was built into a "media" event - the release of the INTC earnings numbers and their outlook for the 2nd half of the year. The message was - "if INTC has good things to say, everything will be right with the market for the 2nd half". Well, their report was judged to be "pretty good" so everyone goes euphoric - what better time to "fleece" some sheep in the ah by the traders. As I write this note, AMAT is up 1.7 percent, KLAC is down 0.6 percent, NVLS is down 2.6 percent and TER is down 10.6 percent. A very long way from where they were trading last night. A nimble trader could have made some very good money in just a few hours. Don