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To: John Pitera who wrote (52766)	7/22/1999 4:39:00 PM
From: pater tenebrarum	Read Replies (1) of 86076

as far as i understand it, a class buy signal implies that the buy-in low is not too far from current levels and normally occurs sometime during the following trading day. so you could for instance watch out for technical divergences the next day to time your entry, or simply wait for the market to turn to catch at least part of the move. the most interesting situation is of course a failed signal - it rarely happens, but when it does, an extremely strong move counter to the signal's direction is in the offing. a failed class 1 sell signal on the dow for instance resulted in a 1,000 point rally. since the market seems to be a bit skittish right now, one must be on alert for a potential failure of the latest buy signal...but, as i said, it rarely fails (failure rate = 1:30 approx.). since many people have stated on the MDA thread that they have made money due to Don's signals, it follows that they must be tradable. since the system works only in a 'normal' market, a failure of the signal would be highly significant, as it would imply that the market isn't 'normal' anymore and, in the case of a failed buy signal, ripe for slaughter. hb

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