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

To: joe who wrote (18708)	7/6/1998 5:15:00 PM
From: Wayners	Read Replies (1) \| Respond to of 45548

I'm sticking with the $27 1/2 "dream" price. Anybody getting in anywhere between $27 and $28 will be happy with their price later on. With really stongly trending stocks like YHOO, you don't get too many opportunites to buy in at a support level. However when those opportunities do present themselves, its time to load up. There is just so much demand for YHOO that people are quick to buy on any dips at all so its not hitting important support levels very often. Instead you'll see it dip down to past price hesitation levels. COMS is different. That type of huge demand simply isn't there. The slope of the trend and how long its been in play are good measures of how much demand actually outstrips supply. It doesn't take much of a dip to get people tripping all over themselves trying to get shares or contracts. Just don't have that yet with COMS--however its trend is up. <<I guess it depends on how strong holders feel about the fundamentals vs. how weak they are at holding their shares while it's dropping - that supply and demand tension between those two camps is possibly what's steering the price at the moment.>> Weak hands really refer to traders. Traders get out at the first sign of a problem. Once the traders stop selling, there are only the long term holders left, so supply is low. That lack of further selling gets traders on the short side to start covering their shorts. They also know where the support level is. Bargain hunters and those that missed the last run come in. Demand is increased greatly without the supply needed. The price dropping slows down and levels out. Then the bulls get bolder and start buying more and more at the market --ask price driving the price back up.