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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Lockeon who wrote (110366)	3/20/1999 9:06:00 AM
From: edamo	Respond to of 176387

lockeon...re: dell pinned at 40..... options expirations, triple witching, program trading causes definite volatility in an issue such as dell....at some point the derivitives become real and are wrenched out of the system... providing the underlying fundamentals of the issue unchanged, these moments give buying opportunities...at this moment there has not been any positive/negative news that directly affects dell...always some "sympathy" sector news...i only consider "company direct" news.. i'm not an advocate of technical analysis...but look at charts, because many traders and programs are driven by charts...sort of what is the "cause and effect" syndrome...doesn't matter but it is real... dell has an unusual pattern, that i'd like others to comment on...the charts defy all logical rules of t/a...for it consistently trades under 50 and 200 dma for a fairly long period prior to an up leg...i think these anomalies are due to high volume of puts/calls on dell...not sure and would appreciate input.. i use leap pricing/volatility as a "future" price indicator...keep an eye on "call" pricing..normally shrinks greatly on a weak stock...dell seems to maintain a high premium on 01 calls.....this "signal" hasn't failed to predict since i've been following leaps...conversely the same does not apply to cpq...premiums a bit flatter...but applies to intc and msft...only a thought... i believe and have "laid my bet down", that dell under 45 a good long term buy...even better at 40...firming will occur..the momentum players will jump in as it moves up, as what is happening to aol...i'd rather pay for a full fare ticket, have my seat than be on stand by at this point...good luck, ed a.