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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Kerry Phineas who wrote (9260)	4/2/1998 12:57:00 PM
From: Bob Kimball	Read Replies (2) \| Respond to of 13594

Kerry, I think there are two trading reasons for this blowoff. First, the short-squeeze factor you point out. No doubt another wave of too-early shorts did just as you guessed. Second reason is the need of large holders to have a rally to distribute into. This action plays right into the hands of the large holders. My guess is that large holders DID build up their positions in March, if not sooner before 2/9, the big gap-up day. If the reasoning (probably right) goes that these large holders will rotate and take profits here, they need a rally to sell into. What better windfall than a new crop of shorts? I see a huge supply today. If the big holders really wanted to hold for another quarter, wouldn't they be dribbling supply out to keep the run-up going?