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Pastimes : Richard Ney and the Wall Street Gang -- Ignore unavailable to you. Want to Upgrade?

To: ccryder who wrote (74)	12/22/1997 2:32:00 PM
From: William	Respond to of 492

Hi ccryder, what is your take on volume indication? Because I heard two contradictary "theories". One says it is a good sign if a stock is up with big volume, because it shows buying interest is picking up; The other says when a stock is rising with big volume, usually the price can't sustain because too many people on the boat would hastly take profit. -William

To: ccryder who wrote (74)	12/22/1997 3:54:00 PM
From: BenYeung	Read Replies (1) \| Respond to of 492

Ccryder, the issue concerning Paul K.'s comment on JBIL thread was due to my lack of explanation on his email to me on Saturday. He was outraged about my posts to him and 18acastra, maybe he read something unintended in my words. I briefly spend 3 minutes to reply his email stating my view of the market without any support. He then put up that post in JBIL thread stating that I was "nonsense" and "wrong." I realized that he probably have not seen some of my earlier posts and not knowing where my views came from. So I wrote him another email last night, stating sources such as Ney, Elias, and Mercila (still not sure of spelling). I think that he will open up his mind to read from somebody who has much better experiences and inside knowledge of the Exchange. William, good question. From a conventional theory, both of your scenarios do exist and are considered bullish. They said that high volume "push" up the prices. And if money flow slows, the tide might reverse. However, from a Ney standpoint, the exchange would like to move away from the lower prices as fast as they could in LOW VOLUME. The exchange dont want the little guys to buy at the lows. Using Ney's theory, I would suggest that heavy volume downside and low volume upside is bullish. That the reason that I believed JBIL will be pullback after its great earnings announcement. Too much volume on the upside is doomed to be pulled back. I just dont call that "profit taking" as not many people actually took their profits at the top. Most people expected more upside and then, BOOM, it started to pullback. eg. 39 level from 42. The short term traders probably sold at 39 instead of 42. I think JBIL is in its consolidation stage right now, which is very constructive and bullish. The more time MMs are fluctuating at the current prices to accumlate, the better it will be for the stock. And you know why Nasdaq is off 3 percent since the Asian flu, but the ECM sector is down 20 percent+??? Because the insiders know that the ECM sector will be the fastest growing industry in the next few years, and collecting inventory right now will give them a PHAT profit in couple years.