Cents and Sensibility - Kimberly and Friends' Consortium Message Board

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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium

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To: gizmo&jack who wrote (100299)	4/26/2000 7:31:00 AM
From: Mike E.	Read Replies (2) of 108040

So much for TA. Think Stan does a phenomenal job on this thread, but I just don't put much stock into TA. Never did. The market does not react mathematically in the short-term and rational valuation doesn't even matter half the time. It is psychology, plain and simple. And psychology has seemed to change now. All TA does is try and figure out the psychology of the market by looking at charts and trends. Let's face it, we all want to figure out if the bullish feelings are stronger than the bearish feelings - we all go long. If other way, we go short. I love TA. It is just another "tool" to look at in the grand scheme of things that helps one figure out which way the market is going next. What other method do you suggest? Gut feeling? What really happened is that finally some institutions and retailers had the balls to come in and buy in size once the sellers were gone. This did not shock me as a friend of mine pointed out to me that the volume on yesterdays third large selloff in 2 weeks was much lower than the previous two. (He actually pointed it out to me intraday but I, for one, did not have the balls to come in yesterday). Sounds like that analysis is based on chart reading (or could be anyway)... Charts tell it all - volume, trends, etc. There's nothing magical about it. All charting and TA does is try and determine the future psychology of the market based on repeatable patterns formed in the past. Certain things "happen" over and over again at bottoms and tops that good chart readers recognize before everyone else (capitulation, complacency, irrational exuburance). IMHO, Mike

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