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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (7749)	4/22/1998 4:33:00 PM
From: Chris	Read Replies (1) \| Respond to of 42787

i will plot a chart with some crazy lines.. again, this technique is unproven to me and im a real novice.. and do know that it's your signal that counts, and not price projection. but yes, would love to share my thoughts..

To: Judy who wrote (7749)	4/22/1998 10:40:00 PM
From: Robert Graham	Respond to of 42787

This is the first time I have looked at DELL, so I have no comparison to go by. First, a couple observations. This stock apparently has attracted the public speculators that use SOES and SNET. Allot of 1,000 and 2,000 share transactions and allot of 100, 200, and 500 share transactions. Many must be opening up their piggy bank to play DELL. Also IMO this type of liquidity where the palyers are in for fractions allow the MM on a stock like this greater freedome in moving the price around. They are always willing to pick the stock back up as long as the stock can provide them with fractional profits. I do not see much activity in terms of large block transactions. There is no pattern of accumulation (or selling) by the funds.. I have found there are long periods of speculative activity with occassional larger block purchases. Some would come in as sales, and others as buys. The MM in DELL definitely had an aim to move this stock up. Sometimes the stock was moved up too quickly and the demand could not support the price change, so the price had to be moved back several ticks where some sales occurred to the MM. This is OK for the MM since they will unload at a high price which did sometimes took a period of time to recover. Later in the afternoon when 79 was passed larger block buying came into the picture. But we still are talking about blocks on the order of 10K and 20K unlike CPQ that had mane 200K and 300K and later even series of 500K block purchases. So apparently the MMs are working the crowd taking in inventory and selling out inventory as the price is moved up. At about 3:30 P.M. the price of the stock started its retreat to close up significantly off of its high by the end of the trading day. Along the way there were a few larger block sales (the 10K and 20K sizes). What this means to me is that first there is little accumulation of this stock by the "good" money, the money of size that will retain a position. Also as long as there continues to be liquidity supplied by the "let it rip" crowd of day trader, the MM will swing this stock up and down. The general direction appears to have been up. But I now see technical evidence that the stock may pause, perhaps retreat, before continuing up. Look at how the MM closed DELL to show a day-to-day gain for this stock even though there was a significant mid-aftrnoon retrace of the day's gains. So if you are interested in a quick profit, this stock may be worth playing in the near future. After all, today DELL saw a trading range of 4 points. DELL is the horse that the public really likes to ride which makes it more of a sentiment driven stock. This action is beginning to spill over to GTW. Interesting. CPQ is seeing fund (and public) money and DELL is seeing primarily the money of the speculative crowd. I would put my money on CPQ unless you want to trade the "flux". Bob Graham