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Subject:  Re: HSAC: Increased Volume Date:  7/11/1999  1:10 PM
Author:  ndenga Number:  2440 of 123805

<Too Many Gaps?>

Earlier I posted:

"[HSAC] gapped up slightly on Friday on a spike in volume. I'm debating whether to grab more before it goes through the clouds and out of sight. I'm a little gun shy about averaging up here after taking a couple sucker punches recently in some other names but this one looks promising."

In considering the decision to buy more HSAC I thought about Rat's warning on stocks that gap up: they frequently come back to fill in the gaps. After a quick trip to Clearstation I realized that HSAC has holes in its chart like swiss cheese. One of the things that's making the qualitative analysis difficult is the amount of noise (i.e., hype) around this stock.

My question is whether I'm reading this chart correctly?

If this thing really is flying on momentum rather than real power it seems to me that HSAC is likely to get whipsawed back to levels ~25% below its current price. In my opinion that's not a good near term trade. Instead it may make more sense to wait and pick this up later after it corrects.

Can any of you TA types give guidance on the idea of a stock "filling in the gaps"? Does the HSAC chart have too many gaps for a near term trade?



HSAC closed 9 Jul 99 @ 47.6875 up 8.5625

</Too Many Gaps?>
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