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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Greg McDaniel who wrote (5614)	11/26/1998 8:12:00 AM
From: hcirteg	Read Replies (1) \| Respond to of 27311

I've fallen and I can't get up!!! Alright gosh darn it, I'm hung over, now pass the alsk seltzer and let's have some turkey. Here's just a few observations as we relax for 24 hours: IMHO, the last few trades (all BIG blocks and BUYS at the ASK) were some MM's blancing there shares out. I don't think we were the only ones that were surprized to see the big pop at the end of the day and I'm not so sure the MM's had enough shares to go around. The key TA element that leads me to this conclusion is the OUTRAGIOUSLY low 1/32 spread at the end of the day. Remember, tight spread means CAUTIOUS MM's...holding as many shares to their vest as possible. Don't you find it strange that only 650K shares moved the stock 1 3/4 points? TA says there were not a lot of GTC sell orders in the system until we hit 10. When we hit 10 the first time on the ask, the ask side showed 10400 (104). Then, in a matter od seconds, what looked like a 60K share sale went through at 10, taking all the sell orders out and the stock jumped to 10 1/4 where, the market closing stopped the frenzy. I'm not so sure the option premiums have yet reflected WEDS. action. You all know I'm a big MARCH 5 and 10 call player and this recent price action is going to add value to these calls, as early as tomorrow as long as the price holds. Increaed volatiltiy equals higher premiums equals better value for us call holders. Again, don't write off the big move at the end of the day to "institutions." IMHO, it was MM's squaring positions )perhaps buying stock to have when I call them out of their MArch 5 and 10's), or more likely, preparing for some very active trading in the next few days and weeks. Finally, when a stock runs away from its moving averages like this one, we can only look at momentum and $$$ flow. The GREAT news is that we have both of these elements very much on our side. Sorry, no more venturing a guess as to stock $$$. This baby has a rocket tied to her and we need to just put on the sun glasses and watch. HC PS. How many of those analysts will have copies of FMK's projections in their breif cases next week. If FRED has been conservative as he says, well, yeah baby. Thanks again Fred, those long posts you did regarding profits are about to be put to good use in NI next week...i'm serious! They'll use them to ask questions. Hope the new CFO (if they have one) has all the right answers. Even if theysaythey will make $1 per share in 99, then we will go to $20 IMHO. $2, $3 per share...you do the math.