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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Christopher who wrote (42457)	1/6/1999 7:02:00 PM
From: Christopher	Read Replies (2) \| Respond to of 97611

The Fed is charting now and believe in TA. I know that I have mentioned the pattern of Head and Shoulder with CPQ, GE, and the DOW so far. Below you will find some support material from the Fed Reserve on TA. In August 1995, the Fed Reserve of NY published staff report under the title "Head and Shoulders: Not just a Flaky Pattern." The paragraph below is the opening sentence in their introduction: Technical analysis, the prediction of price movements based on past price movements, has been shown to generate statistically significant profits despite its incompatibility with most economists' notions of "efficient markets."(Federal Reserve Bank of New York, C.L. Osler and P.H. Kevin Chang, Staff Report No. 4, August 1995.) A more recent report, published in the fall of 1997 by the Federal Reserve Bank of St. Louis says the following: The success of technical trading rules shown in the previous section is typical of a number of later studies showing that the simple efficient market hypothesis fails in important ways to describe how foreign exchange market actually function. While these results did not surprise market practitioners, they have helped persuade economist to examine features of the market ... that might explain the profitability of technical analysis. (Neely). Good trading,

To: Christopher who wrote (42457)	1/6/1999 7:23:00 PM
From: Lynn	Read Replies (2) \| Respond to of 97611

I concur with with your assessment of CPQ. I, too, think it is doing very well. 1/2 a point? Actually, a few points don't bother me in the least. Here's what I think is going on with CPQ. I'll explaining it in the context of the weather outside right now here in S. New England: CPQ is like a car stuck on an icy patch of snow. The driver wants to go forward, but just flooring the gas peddle results in nothing but spinning tires and the smell of rubber. To move forward, it takes rocking the car back and forth, sometimes rocking back farther than expected before BAM, the car jerks forward off the ice and moves ahead. CPQ is rocking back and forth on the ice [yearly high]. Changing the subject, I ordered the book and hope it comes before our first real snow storm. The anachronism of reading a TA book by kerosene lantern in front of the wood stove [we traditionally lose power the first major storm] sounds appealing. Hope you are feeling better, Christopher. Some bug was going around here a few weeks ago; people who got it said they felt, "Draggy," for about a week after they got over it. Regards, Lynn