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Jim:
I agree that DELL has the potential to move higher tomorrow based on the INTC
projected sales report after today's close.
I have a question on the validity of drawing trendlines on Candlevolume
charts. That is, should the volume significantly exceed the average volume,
the X axis would be radically distorted relative to the price axis on that
day. In a mathematical context one could test this by using extreme limits on
volume of zero or infinity.
In the case of DELL, with the volume swings probably not more than plus or
minus 20% of the average over six months, the error may not be significant
when making generalized decisions. On the other hand, setting specific price
targets may, IMHO, be questionable.
Is this a valid concern and, if so, how do you handle the dilemna?
Jim Barone
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