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To: Robert Graham who wrote (8011)	4/29/1998 12:59:00 PM
From: Chris	Respond to of 42787

hwp and txn should be long candidates.. hwp still holding above the old high support.. txn basing at 9 day ema.. still waiting for getcher's comments on txn..

To: Robert Graham who wrote (8011)	4/29/1998 1:01:00 PM
From: Chris	Respond to of 42787

bob g's thoughts: SIInbox (0) \| FoldersSubjects \| PeopleHot \| New SubjectsOptions \| ProfilePortfolios: - [Create a New Portfolio] Talk : Puts/Calls : Tech Stock Options \| Previous \| Next \| Respond \| To: donald sew (41772 ) From: Robert Graham Wednesday, Apr 29 1998 12:06PM ET Reply # of 41823 I do not know the indicators you are using or specifically how you are using them, but I will throw out some thoughts here, some of which may apply and others that may not apply to this situation. First off, Isn't this what happens during a market adjustment where OS readings are not heeded by the market? The market can bounce and move up to then reverse. So rallies end up being short lived. This is different than a natural and regular retrace by the market before continuing up where the short term trend remains intact. The market has been responding by attempting to go up which it did late Monday and continued Tuesday morning, but then it was knocked back down before the close. First off, your technicals are working off of end of day figures, not intraday. Also, what you are seeing EOD can mean either the funds are not participating in the runup, or worse yet, some are selling into this runup like what I saw with HWP. But understanding where the fund money is going can help provide you with one important piece of the picture. Fund money can both buy, stay neutral, and sell. Still, when they buy and sell, the market responds. If they are selling during a market adjustment, I would expect them to sell on the rebounds. Another thing to consider is that the market will be volatile when liquidity dries up. I would think under this circumstance that swings can take indicators like a OB/OS indicator and give a "BUY" signal by having it cross important points on the chart. When the market rebounds from two down days, the public is expecting to see more of what they have seen during this market cycle: strength. So they jump in to participate in the rebound. This is very much like the very optimistic ST speculative public sentiment I have seen even in the recent past. But this is not enough to set a bottom because perhaps the fund money is not participating in the market bounce to any marked degree. As a side note here, I am beginning to think it is the sentiment of the ST public speculators that has been masking the underlying growing negative market sentiment apparently related to interest rate concerns. I think the key areas to look at in order to detect if a bottom is forming would be more based on price action, S&R, and divergences, particularly focusing on money flow and its effects which makes the tape worthwhile and perhaps even looking at types of short term price momentum. OB/OS during a correction can give you "false" readings. Or looked at another way, the non-confirmation of the OB/OS by the market at days end can be considered a form of a divergence. Just some thoughts off of the top of my head. What do you think? Bob Graham \| Previous \| Next \| Respond \| View SubjectMarksBookmark this Subject Example: Compaq. Enter up to 3 words separated by spaces. Subject Titles Only Full-Text Messages with Links <Picture> Send questions and feedback to webmistress@techstocks.com Terms of Use

To: Robert Graham who wrote (8011)	4/29/1998 2:17:00 PM
From: Chris	Respond to of 42787

hwp and txn really moving. let's watch where they close.

To: Robert Graham who wrote (8011)	4/29/1998 4:37:00 PM
From: Judy	Read Replies (1) \| Respond to of 42787

HWP ... an example to discuss general concepts On any given day the tape action on a stock is academic, it is the sum total over a key interval of time that gives the more accurate picture. I don't watch blow-by-blow action in stocks, but felt compelled to comment on your HWP observations since I do not concur on the whole. HWP ... had been consolidating for months in the 60-66 range with block accumulation by funds waiting for the inevitable improvement in fundamentals, they were not retail buys. For this reason and belief in the changing fundamentals for HWP I traded the stock even though its chart was not so hot. What you watched was the additional accumulation by new funds just prior to breakout and the news of upgrade, normally the bulk of accumulation occurs much prior to break out. Quite natural some funds who accumulated in the low 60's would take their money off the table, 15 points profit is nothing to sneeze at in a shakey market. What one should watch for is the funds who accumulated at 70ish do not abandon ship ... and would step up to bat to protect their positions. My sense is that they are doing that. Bob, you've mentioned that you were a short-term trader, but it appears that the time interval during which you observe stocks prior to entering a trade is not quite so short-term. What is the normal timeframe of your trades?