Spyglass Message Board - Msg: 11948026

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Technology Stocks : Spyglass

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To: BayTay who wrote (1257)	11/16/1999 10:19:00 AM
From: Lane Hall-Witt	of 1412

TA has the funny characteristic of being both a study of crowd behavior and also a force that moves crowds. The technical crowd sees a chart movement and then responds, moving en masse into stocks or out of them. This is why charts can serve as self-fulfilling prophecies. This behavior probably won't end until enough followers have been left holding the bag to dissuade them from chasing the herd next time around. But, until that time, it certainly seems like "momentum begets momentum" is the iron law of this market. This, by the way, is totally irrational from a value investor's perspective: Warren Buffett buys stocks on downticks, not upticks.

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