JDS Uniphase (JDSU) Message Board

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Technology Stocks : JDS Uniphase (JDSU)

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To: DownSouth who wrote (2471)	12/1/1999 10:09:00 PM
From: Guy Gordon	Read Replies (3) of 24042

RE" "I would not use TA for JDSU except for the very short term. JDSU is no ordinary company. It dominates its market. Its market is exploding. Its margins are large. This cannot be said about any of your other stocks. They are all in very competitive space and none dominate that space." I don't see how this invalidates the use of TA. TA attempts to use mathematical tools and visual patterns to discern crowd (investor) psychology. JDSU being large, dominant, and having good margins does not change the human nature of traders & investors. Simply looking at a one-year chart of JDSU anyone can see that it is on an upward trendline. This trendline is merely the increasing expectations of investors. If TA did not apply to JDSU, you would not see this trendline. The simplest lesson TA has for a perspective JDSU investor is to buy whenever it falls to the 26-day moving average. Over the past year, this has never been a bad move -- by which I mean you would never have seen a 10% loss before seeing any gain. Whereas, there have been numerous other times when buying would have left you in the red for some time before seeing any gains.

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