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

To: Judy who wrote (7934)	4/27/1998 3:31:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

Very light large block activity with CSCO. In the morning I saw traders flipping for a fraction and a net selling by the public with some occassional buying. The very few large blocks transacted appeared to be sales. Periods of allot of "onsey and twosey" type of transactions with not even any 1K sized orders. After lunch there was some buying, including large blocks by the funds. Afterwards the MM dropped the price down. This is a hint to me that the MM is not drawing stock out of their inventory unless to immediately replenish it. The now occassional large block purchase (20K to 30K) by the funds are showing up. There was a crossed transaction for 5.3M shares at around 2:00 PM. But the ticker Internet Trader that I am using at times can register unusually large block false trades. One of their "features" I suppose. Interesting, the tape goes back only to 12:30 PM on MO where there appears to be a series of very large block sales (200K to 300K) starting the trading day out. This continued with the selling of 50K blocks which lead to a more mixed buying and selling by the large blocks. However, I see that the price held very well. Perhaps there is more buying interest behind those figures that what appears on the surface to me at least for this afternoon. Perhaps there are interests who are accumulating this stock without being willing to step up the price of the stock in doing this. When series of large block sales comes into the picture, the stock price holds well at the low price of its range. Worst case is the price would dip 1/4 of a point and stay there where there may be a few large block purchases made at now was the previous low where the large block sales transacted in one example. So I would say that the intraday bottom on this stock is tentative, but if more large block purchases enter the picture and the price starts responding to this, this picture can change to be more positive. I see this stock has been in a mild downtrend since lunch time of yesterday which started out under low volume and increased in volume at the beginning of today. AT&T first dropped in the morning under selling pressure. But it looks like the price was willing to move down under what I would see as relatively small selling pressure for this stock. So I think this is a "fear" type of response by the buyers and sellers of this stock. I see the stock gapped down below support at its open which I think explains this "fear" based trading. Now the stock appears to want to go up, but then it is hit with what appears to be large block sales which is then met with some large block purchases. So the price have been holding a bottom well and responding in some degree to large block purchases. Even though the price on this one is more responsive to purchases compared to MO, it always manages to get knocked back down by renewed large block selling. So I think a temporary bottom has formed, but until this stock moves above what appears to be intraday resistance at 60, I would also call this bottom tentative. I am seeing a pattern here. Either these stocks are being accumulated by the funds and that is why they are showing a bottom (a form of strength) in this down market, or this is indicating that the down market is bottoming out right now. Earlier today I did not see the fund buying on other stocks that have been accumulated by the funds that I have been seeing now with these stocks. A look at the DJIA and NASDAQ and S&P 500 tells me that the market does appear to be bottoming at least for the interim. Now all we need is a program sell to help us confirm a bottom. I hope this helps. At least you may find my journal amusing at times by attempting to read behind the price action of the tape. I do think this is a worthwhile exersize even though I will make my mistakes in this regard. Bob Graham