We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon
Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
BOP has been negative, indicating heavy selling, since the stock fell out of bed. The rebound on 10/29 should have brought in bargain hunters. Instead BOP showed continued heavy selling.
BOP does not measure individual trades, only the total selling or buying for the day. I doubt the stock can recover short term if this trend continues. And if the trend does continue, the stock may break again or more likely fade away on lower volume.
The action on the tape today indicates a battle between the bulls and bears on very heavy volume. I'm anxious to see the reading on BOP this evening.
My points were (a) was the "trade" of 1.8 million a "buy" or "sell" by TC2000? and (b) BOP can diverge with price movement. For example, look at HWP in July. It fell from 46 to 38 and moved up the last half of the month to 44. BOP was negative the entire month. A move from 38 to 44 is almost a 16% gain in 2 weeks yet BOP was very negative. Personally, I look at BOP but only use it as a possible confirmation of other TA. Right now I expect EDS to be heavily traded short term. I also think due to the volatility that there will be a fair number of traders in and out within a day or so.
Good point Dave, and precisely the point I'm trying to make. I look to BOP to confirm or not confirm price action. When EDS rebounded sharply yesterday and then BOP continued to show heavy selling, this indicates something is wrong. The price action is suspect.
As a follow up, BOP today again shows heavy selling for 10-30. This index is now strongly negative for five days in a row.
By the way, last year I contacted Worden Bros. and requested a 14 page paper that Don Worden wrote on BOP and CMS. It was interesting reading. If you haven't seen it I'm sure they'd send you a copy. Sorry for getting off the topic here.
To All: Hope this story will cheer you up. From Barron's Online: "The computer-services firms are booming. And top players, including EDS, IBM and Computer Services should thrive, even as newcomers rush in."