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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Toni Wheeler who wrote (12436)	12/19/1998 3:18:00 PM
From: Rob	Read Replies (3) \| Respond to of 14577

FWIW, I watched two entire days worth of trading on SIII from my trading desk and these are my technical observations: 1. There wasnt a huge short squeeze - with subsequent skyrocketing of price - for a few reasons; SIII's a liquid stock, the Clinton/Iraq news completely overwhelmed the news of this deal, and there weren't many shorts left in the stock. 2. There WAS really nice, sustained movement up in the stock with appropriate backing and filling at the 6 3/8 level (Thurs) and 7 1/2 level (Fri). Conclusion? The stock is being transferred quickly from daytrading hands to strong hands - funds or third parties (MM's) willing to take a stake in SIII for the intermediate or longer term. This is very bullish. 3. Pursuant to point 2, there was never a real rollover during both days of trading. I see this constantly in thin-float stocks like Internet issues and was expecting it in SIII just because it was being daytraded so furiously. Conclusion? It's a cheap stock and speculators are prepared to hold it in quantity until (read: if) it backs up to their sell stops at 6 or so. I don't think there's much risk of this. 4. If we can get a strong bid on SIII at 8 on Monday, this thing could go another couple of bucks north in the short term. Classic expansion breakout from a great-looking U-shaped bottom. Real strong chart pattern. Also, don't be concerned if we spend a couple of days just south of Friday's close, but above 7 1/4 or so. This would be somewhat predictable and very healthy, signifying a possible bull flag going into the final trading week of the year. Again, FWIW from this trader. Good luck. Rob