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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Janice Shell who wrote (774)	5/12/1999 3:55:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 7056

Actually it is a very common trading pattern for stocks after a big negative surprise. First day you get a big gap down. Then you get bargain hunters and true believers looking at the new discounted levels and taking a run at the stock. They generally discount the negative and profess their awe and gratitude at getting a shot at the fire sale. This 'dead cat' bounce can last as much as several weeks. When this peters out you generally get a retest of the lows and often more. Then depending on whether the negative was an aberration or a revelation you find out whether the stock really will recover. Sometimes it really is a fire sale but often it is just the first crack in the facade. Old Wall Street saying regarding negative surprises 'first out, best out'.