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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: JHalperin who wrote (4243)	9/2/1998 10:54:00 AM
From: DanZ	Read Replies (2) \| Respond to of 6565

Joel, I assume that you were directing your question at me even though you sent it to Jim. I noticed the weakness in VLSI yesterday, along with the other major ASIC supplier LSI. I'm not sure why these two companies didn't participate in the rally but it's telling me that VLSI needs to base for a bit before it can sustain a rally. The 52 week low is at 8 1/2 and it traded at 8 5/8 today. It's important from a chart perspective that the stock hold near here. It has been strong on the opening the past few days and then sellers have come in taking it down. I took a small step into the stock this morning at 8 3/4 but I'm keeping a close eye on it with a close stop. When stocks all around are rebounding 5% to 10% and you are holding one that isn't going up, many people will sell out of frustration. That keeps the stock weak until buyers with enough size come in to eliminate the supply and turn the momentum the other way. It will be good from a psychological perspective if VLSI doesn't trade below 8 1/2 today and even better if it closes near it's high.