To: Lonnie A. who wrote (25481 ) 11/11/1998 5:19:00 PM From: Freddie Forte Read Replies (3) | Respond to
Lonnie.....Check out the technicals. The buying actually started October 14. Nobody noticed. If everyone was selling, we would be at a penny now. Good support at a nickel over the last few weeks. Accumulation/distribution indicator (using 180 days as the time frame) began it's ascent at 500,000 to, now, over, 3,000,000. The actual numbers aren't as important as the direction. And the direction is headed skyward. The stock was collapsing into new lows but underneath the surface, people were accumulating positions, which was indicated by an accumulation-distribution line that refused to follow the price down. The point is, when price diverges from A/D, A/D is pointing the way the price will go. A/D indicator is pointing due north. This is the tip-off that a substantial position has been accumulated and still is. It may be a sucker's rally as Buddy suggested or it may be the real deal. Technicals cannot reveal the rationale behind these movements, only that they are occurring.
