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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (19349)	2/8/1999 12:42:00 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 42787

Sonki, one post I read about the DELL auction site brought up a good question but I don't remember where I read it on Friday night. The original news release about the auction site stated it would be used to clear old DELL inventory. A poster asked, what inventory? Isn't DELL's business model to build "just in time". Beware of the "CPQ syndrome" (stuffing inventory to make the earnings numbers). It tends to raise it's ugly head later when investors least expect it. DELL was hammered for not beating estimates by enough last time, maybe they are stuffing the channels to make sure they beat this time hoping they can ditch it later while no one notices. Market wise, many on MDA see a possible bounce later this week. My charts are pointing to something happening later this week also. Although they really don't point up, my gut says that is where it should go. Bollinger bands are already tightening around many of the ones I track, there are some nice support levels that should hold a first assault although I doubt they will hold a second or third attack. My one concern is the divergence in the different indexes. Some are bearish, others bullish and the DOW is in no man's land. I feel we may get a pop but then we should slide into earnings warning season. Isn't this starting to become a regular cycle though? Also for DELL, if it weren't for them having earnings release soon, the chart looks like a perfect short candidate to 90. The coming earnings release is the only thing holding it up IMO. Good Luck, Lee