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

To: Ben Antanaitis who wrote (3916)	9/5/1998 12:22:00 AM
From: Gary Metzer	Respond to of 21876

Threadsters, FWIW I sold my 200 shares of LU today after it was in what seemed to be a never-ending downtrend. Now that I read more of the negatives that were issued today, it makes me feel better. While it is a good company, I think it is still too high a price and has too much of a risk of dropping to 50ish. If it gets there, I'll be back. I track 17 technology companies and everyone of them has come back to its simple trend line. (no fancy moving day average or the like, just a line drawn along the daily lows) I'm no technical wiz, but it sure seemed bizarre that so many companies followed this "plan of correction". There were only 3 of 17 companies that actually fell below their trend line (ASND, CYMI and MSTR) while INTC bounced off it's line on Monday. The ONLY company, of these 17, that has not come close to touching its trendline is our beloved Lucent. Correcting to trend would take it to 50 or so. The above observation, combined with not so flattering comment from Cramer, et al, AND the fact that LU will be free to purchase a company next month, with a dilution in stock value a possibility, put this company at too much risk for me at present. As for the other 17 companies, when I look at their stock price relative to their trend line and combine it with MACD(3,10,16), which has made a hairpin turn, and throw in the STRONG move we saw at today's market close, the possibility of a sustained bounce Tuesday seems highly probable. I'm loaded with cash and if the futures look very strong prior to open, will be going on a bargain hunt. Good luck to all. Gary