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

To: William Epstein who wrote (7118)	3/16/1999 8:42:00 AM
From: William Epstein	Read Replies (1) \| Respond to of 7841

STATISTICAL CONFIRMATIONS; I have several statistical items that are confirming a trend is in place, this morning. Yesterday MACD crossed the zero line for the first time since Jan. It is now positive. Slow Stochastic indicator reached 80 on the 3 mos. chart for the first time since Jan. Remember I said, the Stochastic indicator must be 80 or above for the stock to be in an uptrend? Money flow is still light. Volume + shows positive volume for the last 5 days. We haven't seen that since Jan. We have 3 days of upward moving prices and closes. The general markets are heating up and moving up. Yesterday, we saw a broadening out from the leaders to all the tech stocks. All were up. Forming my own opinion, this correction is over, the SEG specialist has reversed position and gone long, volume accumulation is light so he has no incentive to short the stock therefore, he can continue up without too much resistance. When you think in opposite terms, the way the specialist sees it, since he is on the other side of most trades. Public buying of the stock is resistance because he must sell from inventory and if there is none, he must sell short. If he sells short he must take the stock down at some later point during the day or next day and cover his shorts. So long as, volume accumulation is light he doesn't have to go short. No resistance. I've seen no shorting Friday or Monday. I haven't seen that since Jan. either. I can't speak for all stocks but for SEG I see a picture emerging. PHOTOMAN