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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: drsvelte who wrote (6509)	5/24/1999 1:50:00 PM
From: John Madarasz	Respond to of 17183

Begging to Differ.... Several gentlemen have commented that the EMC chart does not look pretty and the stock is in a distribution phase. It is my understanding that distribution of shares from market professionals and specialists occurs on high volume and higher prices. Looking at a one month price and volume chart you will see that since 5/10 avg. daily volume has been below normal. I would guess that the stock is rather under accumulation, albeit tentatively. It is a generally accepted fact that market professionals accumulate on low volume at lower prices. Basically they are collecting the shares that they DISTIBUTED/SOLD/DUMPED at much higher prices on much higher volumes. This is one of the reasons that it is unwise to "chase" a stock during very high volume and price runups. Chances are good that you will be buying at or near the top price for that particular time period. It is always best to accumulate during "quiet" periods of low volume and low price. In regards to the EMC charts, they certainly have looked better, but if you are a new investor or a long term holder it could be argued that these are some of the best values of the year in regards to share price...a good time to start a position or add to an existing one. Many thanks to those who offer opinion and information, it is always best, of course, to consider all the information available and make the most informed decision possible. Regards, JM