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Technology Stocks : Equinox Systems (EQNX) -- Ignore unavailable to you. Want to Upgrade?

To: Scott H. Davis who wrote (284)	3/9/1998 9:17:00 PM
From: Ron Kline	Read Replies (1) \| Respond to of 765

Very interesting to look at the chart of EQNX. Before a week or so ago it looked like a great cup and handle formation on the charts. I was waiting for volume to come in after the handle formation but it never happened. Today it breaks down showing that it failed. At this point it looks like resistance should be within a couple of points. I learned something from all of this, that what you read into the charts isn't always what it appears to be. The reason I followed this stock was William O'Neil gave out some names of companies he said to look at, and EQNX was one of them. Ron

To: Scott H. Davis who wrote (284)	3/10/1998 1:09:00 AM
From: HeyRainier	Read Replies (1) \| Respond to of 765

Scott, "...The dip below the trendline occured on a generalized bad tech/market day - question is, do you factor this into the equation subjectively, or do you go with objective TA?" I've learned to factor big market movements into the equation subjectively, such as the day when Visio(VSIO) experienced a market-driven Bull Trap on 1/9/98. The stock bounced back nicely in the near term after the short term market effects were shaken out, but eventually, the individual issue's own fundamentals(separate from the broad market's) caused it to re-experience the Bull Trap (from which there has been no recovery since). Rules are rules, however. Equinox has had plenty of days since it broke the intermediate term upward trend to recover, yet it still hasn't. Remember Sperandeo's rules on drawing the trendlines--there really is no way around them. The short term trend-following indicators remain negative, but based on stochastics, it could be nearing oversold levels. I don't like mixed signals, however, since they don't help very much. BTW, the stock now has a short-term downtrend it has to break out of in order to make the trading characteristics of the stock more attractive. This is the first week since the stock closed at $9.00 that one of my long range indicators have turned cautious. It's not 100% reliable, but it is one of the more trusted Expert Indicators from Omega Research I look to. The good part is that based on the momentum characteristics of the stock, a peak doesn't seem to have been reached just yet, so there could still be a possibility of this continuing to move up. The fundamentals of the company certainly dictate that such a move is possible. Regards, Rainier