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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (846)	11/4/1997 11:10:00 AM
From: Frostman	Read Replies (1) \| Respond to of 4571

I couldn't get 1/8 at the open like I did yesterday. 3/16 was the deal, and that was finally executed in 4 buys that were submitted as 2 buys. Interesting stuff.

To: Roebear who wrote (846)	11/5/1997 1:11:00 AM
From: DDS-OMS	Read Replies (2) \| Respond to of 4571

Roebear, "Gary, was that you<gg>" No, took the day off--had to work at my "real" job--and was swamped all day. Doesn't look like I missed too much. Tomorrow may see an opportunity again. BCMD's chart is forming a "flag" (pennant), also called a symmetrical triangle. Look at Oct 15 as being the flag pole and if you connect the highs and then connect the lows, these 2 converging lines form a pretty symmetrical triangle and the lines converge more or less on Friday (the apex of the triangle) A couple of guys named Edwards and Magee wrote a defining book on technical analysis in 1948--now somewhat fallen from favor as the computer age has made technical analysis instantaneous rather than drudgery with pencil and paper as was the case pre-80's. All of Edwards and Magee's work involved interpretation of patterns--and as such, perhaps too much depended on the interpretation. BCMD's history for its technical analysis really starts mid-October and I think is too short a time period for much reliability on modern TA. Hence the throwback to pattern analysis. Classically, a pennant is a consolidation pattern that should occur with declining volume. There should be at least 2 lower highs. and at least 2 higher lows on which to draw the trend lines. Also, the pattern should not take more than 3-4 weeks to develop. BCMD fits these criteria. The reason for any interest in this triangle is that the stock is expected to dramatically break out of the confines of the triangle before the apex is formed. The breakout is USUALLY in the direction of the previous movement, i.e. in this case up. Depending on exactly how you draw the lines, ( use intraday highs and lows, not close) the apex seems to be at this Friday, so the breakout should be by then. (I also chose to ignore Oct 29 low--the rest of the lows line up very nicely) So, if BCMD doesn't break out on large volume by Friday at the latest, dont blame me for this analysis--blame Edwards and Magee<gg>. Regards, Gary