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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (30701)	2/21/1998 9:52:00 PM
From: Jerry Miller	Read Replies (1) \| Respond to of 176387

..., if that doesn't happen, would you agree that the proposition that gaps must be filled is incorrect? Hi Paul, (i knew you wouldn't be able to resist) ...but without deteriorating into a discussion of belief systems, grant me that gaps do fill. perhaps frequently, perhaps only on occasion. but they do fill. that being the case, "backing and filling" is a "tool" of technical analysis that cannot be entirely dismissed. so let me take the idea further, buy saying that this gap-up we've experience recently may be filled, and with a proper feel for its timing, those of us who are long on Dell, can prosper along with those who may be short the stock. this is not sacrilegious. to wit: we may fill the 113-119 gap-up created Thursday, sometime in mid to late March after the stock has split. if, as Patrick suggests, we split at around 140, the stock then of course trades at 70, and the gap range becomes 56 1/2 to 59 1/2. buying opportunity plain and simple. for the more adventurous longs this scenario might bring the May 60 Puts into play (since the dip could well take place after March expiration). dump the puts when you feel the gap has filled well enough, and buy back shares perhaps, in anticipation of another summer run. i realize that you more than likely find this another misguided foray into the bizarre and the unproven. ...but any tool is how you use it. wouldn't you agree ?