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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: bob zagorin who wrote (10351)	4/21/1998 12:55:00 PM
From: Robert Graham	Respond to of 14631

Are you making an observation of the price moving up recently on this stock? Or are you saying that this price rise is actually portenting positive earnings results? This is a natural rise before earnings which stops at the resistance at 9. I would not let this rise in price predict the future for you. Quite often the market is wrong when it comes to their short term assessment of the fundamentals except perhaps with companies in a strong quarter-to-quarter growth pattern. The public knows how to straight line extrapolate future results like the analysts do. Perhaps even a monkey can be trained to do this if presented in the right way as a line that needed to be extended. But the public had it wrong like when the stock was showing strength before it dumped from 22 down to what ended up being 5. And then the market was wrong again when there was continues selling and then a rebound to 9. Someone made a healthy 80% profit, but not the ones who were selling to bring the stock down to 5. It pays to look at how stock behaves over time in order to help determine when to play the upward moves of the stock and when to fade them. If you are going to play this price rise, I suggest fading this one. Generally it does not pay to follow the public (blindly). For example, sure they can be "right" in a well-established trend. However, they also tend to buy at the top and sell at the bottom. This is when a market player can give back any profits that they have made. I suggest that traders and investors alike do their own thinking, and know when it pays to fade the market. That is my suggestion. Bob Graham