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Gold/Mining/Energy : Global Thermoelectric - SOFC Fuel cells (GLE:TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Gulo who wrote (372)	4/12/1999 10:17:00 PM
From: the Chief	Respond to of 6016

The momentum that you saw as flatline was actually the result of a "box". A box is built above and below the trading price. The top of the box is generally 30-50K on the "ask" and the bottom of the box is 30-50k on the "bid". When the stock rises to the top of the box, the bidders see the huge offer and won't rise to meet it. Sellers see the huge offer and undercut it. The reverse happens at the bottom of the box. This makes all sellers and buyers play in the box. The box is created by the professional daytraders and the purpose is to "feed on the shares that fall into the box. When the brokerages have there "quota" they will remove the top of the box. If the stock loses its own momentum, they just move the box lower and feed on the cheaper shares. So the flatline you saw today may be repeated for a couple of days or completely abandoned. The "signal" it sends to most people is "confusion...is this a buy hold or sell.......but the only way to find out is to look at the trading pattern tomorrow, if it continues to trade in a very tight trading range, after a typical gap up tommorrow, then its a hold, if it opens flat and falls, then watch to see if they put in a box bottom at $4.75, if they do, it won't fall any further and they will continue to feed and will likely run it up later on in the day or week! the Chief