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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Fitzgerald who wrote (8463)	11/5/1998 8:21:00 PM
From: Dennis K. Showers	Read Replies (2) \| Respond to of 14266

Jeff, You have identified exactly the evening star pattern.It is quite reliable, in my opinion.I chart in candlesticks and have seen this pattern be very reliable as an indicator. In Steve Nisson's book, "Japanese Candlestick Charting Techniques", there is some further information that I will share. Steve says "I like to compare the evening star pattern to a traffic light. The traffic light goes from green (the bullish white real body)to yellow (the star's warning signal) to red (the black real body confirms the prior trend has stopped)." He further states "In principle, an evening star should have a gap between the first and second real bodies and then another gap between the second and third real bodies. However, from my experience this second gap is rarely seen and is not necessary for the success of this pattern. The main concern should be the extent of the intrusion of the third day's black real body into the first day's white real body." Jeff, this is exactly the three day pattern that we have formed. Here are some other thoughts that I have that support a bearish short term opinion. 1. The middle day of the pattern was very nearly a "shooting star" formation. We only lacked a longer upper shadow. It should be twice the length of the real body. 2. The rule of "eight to twelve". That is, after a reversal in direction a stock may correct after setting 8 to 12 new highs or lows. This is not a hard and fast rule, but just an indication that one should use caution. 3. The overall market has had an extraordinary run in a short period of time and should take a breather. 4. As was stated recently, as of Tuesday evening all the bulls were in the black. Many of the bulls have tremendous profits and will have stops in place to protect them. Many of our thread are in that situation. We are very vulnerable and it would not take too much selling by some institutional bear to trigger the close stops which could send us lower in a hurry. From today's action I would say that there were many stops at 25. 4. If you take THQI's chart and draw a line across the recent highs that occurred presplit, you will notice that we penetrated that line yesterday but then failed to close above it. Also, I like parallel lines that form a channel and I have had a line on my chart since last May. It was formed by the lows established in Feb. and May. I realize that this line was violated during the recent crash but I attribute that to the tremendous downdraft caused by the overall market. You will also notice that since recrossing that line we have not stopped rising until today, so the line is still important to me. That line forms the parallel channel with the line formed by the highs. 5. This last thought is just an assessment of emotions. I have developed the term "giddy enthusiasm" that I can sense at different times on this thread. Everyone is bullish, everyday means more profits, company prospects seem fantastic, bears are met with distain, we all feel like we are going up forever. 45,55,75,100. I think I have heard all of these numbers at some time. Everything is rosy and we all have our blinders in place. Giddy enthusiasm. I am beginning to get that feeling again. Yes, Jeff, I believe we have formed an evening star and I am going to act in the morning. For what it is worth, I am a BULL on THQI for the long term and have been for two years. Although I don't post often, I have read every post on this thread and many of the posts on Yahoo,s thread so I feel that I am in touch with the company. Whitetail