SI
SI
discoversearch

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.
Non-Tech : Dorsey Wright & Associates. Point and Figure
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Lost1 who wrote (5901)2/4/2000 6:56:00 AM
From: Tommy Dorsey  Read Replies (2) of 9427
 
Since each of you are coach of your own team, defense can mean many things to many investors. It suggests overall that since the sell signals have overtaken buy signals and a trend has started then wealth preservation is paramount over wealth accumulation. It does not mean that there arean't some sectors that have had their own bear market already like the finance which can be bought, it means that you exercise much more vigilence than you would during times the buy signals are in control. The BP has no relation to the DOW or the S&P 500, none at all. A handful of stock can carry either up to new highs while the majority of stocks are left behind. This is in essence what happened through 1999. No real gain until the last quarter and then only an additional 10% new buy signal on the NYSE BP. Defense does not mean we are going into some sort of protracted bear market and there is no time limit on it. If you will look at the BP chart you will see some points where the defense lasted only one month but in general it is much more protracted. Defense is a move to help prevent one of those markets where your portfolio is devistated by 40% which could take 7 or 8 years to come back from in a normal market. To some defense means be more aggressive on the short side with stocks that have bad fundamentals and technicals, others will simply buy less, while others will simply come off margin. Others will build a large cash position and not worry about missed opportunity and will be ready to go back with both barrels when things change as they always do. We have been talking for weeks now about the bottom in Utilities until we are blue in the face but it has basically fallen on deaf ears because those stocks don't go up 100$ in one week but take Duke Power has gone up 21% in a matter of a month or so since we recommended it. 21% in a utility is not bad in a month but it ain't Red Hat and most investors are reluctant to leave the high tech/high wreck world. Scana SCG one of our favorites has moved up 31% in a year but that's a drop in the bucket when one can buy Red Hot and rise and fall an accumulated 500% in a year. Point is there is always a bull market somewhere and defense requires you find other avenues or simply go with the flow and relax and know that if you watch the indicators paitently they will once again reverse beginning with the short term and you will be on the train again. I hope this helps. Tom
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News