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Non-Tech : CDWI CD Warehouse -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (99)	8/21/1998 3:06:00 PM
From: Ron Kline	Read Replies (1) \| Respond to of 550

There are two ways to play CDWI. One is to buy when it has corrected and you feel it is a good price. The problem with that is it is hard to find bottoms in stocks so you may buy and find it go lower. It's hard to hold stocks that you are under on and many people end up selling it when it pops back up instead of going for a longerterm gain. The other idea is to buy it when the markets have really reversed. There are different indicators to do this but one that is reasonable is a 1% rise in the dow after a bottom followed by another 1% rise from 3-10 days afterwards that has stronger volume than the day before. We have had 1% rises but no followthrough yet, and today we are down again but holding key support of 8400. The problem with the small caps is they are not liquid and can move up and down very quickly causing large big and ask spreads. I believe that once the market reverses that CDWI will participate so its really a call on the general market. If we are in a bear then all stocks will go down. If we just are in a correction then all stocks should bounce in the coming months. I'm still waiting on the sidelines but may pick up some CDWI if it gets to the $10-$12 area, or if I see a technical reverse in the market. Ron