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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: LWolf who wrote (2641)	5/16/1998 5:56:00 PM
From: Ben Antanaitis	Read Replies (2) \| Respond to of 21876

Laura, the Max-Pain effect is a second order effect ie other more direct forces like earnings reports, breaking news, Tom Kurlak, Greenspan, plain old momentum, etc can swamp out the natural 'attractor' price that the Max-Pain analysis tries to calculate. Now last month LU was riding a wave of momentum and, as you can see from last months graph, momentum swamped out the Max-Pain point. This month, the momentum has lowered and no great big break news stories or up/down grades were made and LU seemed to be attracted to the Max-Pain point. DELL, on the other hand, is not following any logical rules except momentum and pre-earnings run up, right now. It blew away the MAx-Pain effect. Perhaps, in the coming months, it too will settle down and the investor/trader will be able to get a hint of where the stock price may be on expiry day. That help? Ben A.