Re: [CANSLIM] Another mystery plunge

From: Hong Hsu <honghsu@bellatlantic.net>
Subject: Re: [CANSLIM] Another mystery plunge
Date: Fri, 25 Jul 2003 23:54:35 -0400

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DMC,

Thank you very much for taking your time to comment OSTE. After
read your message twice, I am not so sure I am convinced. Here are the
reasons:

"It was making fairly short, squat candlestick forms in the last run up to $16.30 as volume was tailing off."

Are you refer price up run on 7/11? If it is correct, then do you
suggest that there will be selloff after price run up for 19% in 4 days?
Take an example, in May RRI run up 9 days out of 12 days for 31%
without volume support. There was no selloff.

" ...$14-15.50 area. This indicates possible support at this level, but also a lot of shares changing hands. Profit taking."

You are right every time a stock went to new high, it will be profit
taking. However profit taking doesn't explain today's selloff. Selloff
is totally different from profit because after that in most case the
stock will not recovery in months.

"RSI was clearly tiring last month and forming a big negative divergence with the price action; bearish."

I am not sure the parameters you are using. I use 6-3.

"the overall market is incredibly topsy here,"

Do you imply that selloff was caused by today's market? I saw KYPH up
24% today in same medical equip group. others like NSIT up 31%, THER
28%, SMMX 19% and PCLN 26%. If today is 9/11, then your point holds
truth.
As I mentioned, it probably has similar reason as AKSY today.

Thanks again and good night,
- -Hong

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