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Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pittman who wrote (4792)	2/21/1998 6:41:00 PM
From: Arnie Doolittle	Read Replies (1) \| Respond to of 10227

Ed, I disagree with your statement that 26 did not hold. Stocks must close 3% below support before they are considered "broken". I have yet to read a technical analysis book that disagrees with that approach. In NXTL's case, that would have been 25 1/4. Since the stock didn't fall below 25 7/16, the support at 26 held. And did you notice how the stock rebounded with volume the day it closed below 26? Someone is holding a basket under NXTL at the 26 area. So far it has held. Friday's double top pullback again came on low volume. Yes, I know that stocks can and do fall without volume. Monday will be interesting because the option expiration date will be history. Breaking 22 is a pipe dream imho. I'd be interested in seeing your accumulation indicator in action as I would back test it in several situations that have worked well for me in the past. If it's not proprietary, perhaps you could mention what you're using. Arnie

To: Ed Pittman who wrote (4792)	2/22/1998 5:10:00 PM
From: Ken Benes	Read Replies (2) \| Respond to of 10227

Ed: Friday was an interesting day, the stock opened near 27, held for awhile and retreated. In the early afternoon, the stock rose to the 27 level on some very large orders and held that price until the last half hour in which it settled at 26.5 on a sparse group of trades that all were in the hundreds. You were correct in one of your posts indicating that the institutions were responsible for most of the large block trades that have been evident for some time. Occasionally, you will see a large block sold, but the norm is the block trades are on the buy side. What is interesting, these trades are not occurring on the instinet rather it appears that the market makers are accumulating the stock on pullbacks and then selling them as blocks to the institutions. This can only mean that the institutions are loading up stock that is being shaken out of weak hands. I believe a lot of this stock is coming from individuals who believe as I do that there is a very real systemic risk in the market that could appear as a rapid sell off at any time. This is one of the reasons that I am watching nxtl as closely as I am. Barring such a selloff, a breakout is very imminent. We all have out methods of trying to be on board prior to the stock taking off and protecting ourselves if the market falters. I believe that telecommunications is where the PC was six years ago prior to the acceptance of windows and the introduction of the 486. I think the next six years is going to be explosive for the communications industry, particularly wireless, and it appears that nxtl will benefit as much as anyone during this period. At some point, nxtl will be taken over by one of the big players, for a very hefty price, that will amount to small change for one of the multi national telecommunications companies. Ken