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

To: Hugh W. who wrote (22565)	3/19/1998 11:10:00 AM
From: James F. Hopkins	Read Replies (2) \| Respond to of 97611

Hugh; "When a wise man and a fool argue, they become equal, and the fool knows it." Let the shorts short, for them to win they must vanquish the longs, as I write this I see covered calls being writen. The writers for the most part are locking in a profit, of about 20% or better per year..the buyers are looking for more than that. Thing is thoes writes mean that stock won't be sold. Most of the volume we see is not stock trading, it's borrowed shares, the real battle at this time is not being fought between the bulls and bears, it's between the bears themselves trying for positions..this always in the long run helps the bulls case. While the bears fight it out among thenselves out for position, the Bulls are helping one another..some are writing calls, locking in some profit, others more bullish are buying looking for better returns. Others yet are writing puts, to offer support , so on the option side..( longer term ones ) a bullish case is being made. Shorter term it's hard to tell, and no-body really knows. Least of all the ones who argue about it. -------------------- My only word of caution to any shorts is that they understand how the brokerage houses short and how they cover. A history of the short interest on CPQ shows 2/3rds of them getting burned in the past. If they understand the odds and how the brokerage house uses in house data to keep the edge. Then the more they short the more they will help any one who has some dry powder, most funds and such are not on margins at this time, many have cash looking for a fire sale. -------------------------- Jim