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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (16395)	5/29/1998 4:51:00 PM
From: Wayners	Read Replies (2) \| Respond to of 45548

After today's daytrade, I am very happy I switched camps from the long side to the short side. Here's what I think happened from yesterday. I saw the professionals accumulating shares in the last hour of trading at $27 because they know they will get a gap up this morning. The gap up takes COMS right to the resistance level of $27 1/2 which was getting "old" at this point. Downtrend indicates higher probability for price drop and it being "old" means probability high for a big price drop. Add in the gap up and traders who accumulated at $27 bailing at $27 1/2 to amateurs buying the gap up (on no COMS specific news--always a big mistake), volume dries up, there are no buyers at the resistance level and the price starts dropping. I covered my short yesterday at the close at $27 1/16 and reshorted this morning at $27 1/2. Covered when quote.com exploded just after 15:00 at $26 1/8. I would have held but I don't like being blind. Now COMS broke below support of $26 and went as low as $25 1/4. The trend is still down. First retrace to $26 is an automatic short for probably a $0.50 downmove. Second or third move to $26 will be the equivalent of shorting today at $27 1/2, especially if there is a gap up to it. Later everyone.