Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: Walter C. who wrote (310)	3/12/1998 2:37:00 PM
From: Don S.Boller	Read Replies (1) \| Respond to of 3873

Walter: OFF TOPIC - Quick discussion of "gaps"................. As I mentioned in my previous post - a gap is created when a stock (or commodity) trades at higher prices on day 2 than the high of the previous day: e.g., day #1 high 65.50.....day #2 low = 66.75.....creating a 1.25 gap. The theory is that almost all gaps fill. Why, "nature abhors a vacuum". As an aside - I first learned this (TA) theorum when I became a NYSE broker in 1961. Does it always work? No, but (see previous post) mostly. I have studied technical analysis since - before most of the TA folks on these threads were born and I can say firmly, 90% of what you see "them" post is hogwash!!!!! Some stuff works for a while (usually until it becomes too popular). But then - poof - the pros and MM's wise up and "copper the play" of the sheep. It has always been thus. I suggest that before you or others use a TA approach like gaps or whatever - you go to a good bar-chart graph showing hi-lo-close and satisfy yourself as to the efficacy. A good investor (IMHO, make that very humble) needs many arrows in the quiver - TA is ONLY one of those needed. BWDIK Best, Don