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Biotech / Medical : Vasomedical Inc. -- Ignore unavailable to you. Want to Upgrade?

To: john view who wrote (777)	11/30/1997 9:20:00 PM
From: Francois H. Gaston	Read Replies (2) \| Respond to of 1605

Bev: you are wellcome. John: What I am saying is that the drop has been severe, and we are now just above a new low. At this point we could witness a good bounce,.... but often those are "dead cat bounces", unless there are "new" news coming up in the interim. The "dead cat bounce" could bring us to around 2.4 at the close, this week (may be). Let's face it: I am also shocked by this brisk decline despite such a good spin of the AHA results. You are right that we can expect some recovery early this coming year, in expectation of the new data which could provide for blanket coverage by some insurances (that is what I read on this tread) In the meantime, the 50d. Moving Average is going down and it looks as if a visit to < $2 is now (unfortunately) possible,.... simply on a technical basis. If we reach 1 5/8 or so, we could stay below $2 for a while as $2 would become a psychological resistance level (IMO). As we have "touched" $2 intraday, it is quite likely that we will be below 2, at least on an intraday basis. What I am also trying to say is that one has to try to trade with the trend (not my own idea, here!)... and unfortunately, the trend is now down for VASO. A trend has to be established to be able to place better trades. In VASO's case, this is high time for day-, short-term traders, but it is NOT time to place a long term trade (again, just IMHO). A long term trade is better placed after: (a) a long period of basing has occurred (not the case here), and/or (b) the trend has turned to the positive. AND one has to make sure that the general market condition is fairly stable... and if the DOW is making highs after new highs, that is even better. In other words, I just wanted to indicate that trying to catch the "low" can be dangerous because nobody knows what the actual real low will be,..... especialy during this volatile period. Personally I have stopped trying to catch these "falling knives",...or, BTW, these stocks which rise so quickly. I now place trades when things have stabilized, after a period of basing. And again, those are just my thoughts about this stock. I am not a professional trader or analyst (just an amateur, with another job!) and I am not suggesting that the above scenario WILL happen... just that the odds suggest that this scenario is more likely to happen than not... The best for VASO would be, of course, if basing occurred around 2-2 1/4 instead of basing around 1 1/2 - 1 3/4. Again, good luck. Gaston