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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (1149)5/17/2000 8:39:00 AM
From: Arthur Tang  Read Replies (1) of 1471
 
Technical analysis is watching for breakout (to buy) and breakdown (to sell). Easier said then done.

In between breakdown and breakout is base building which may take a great amount of time. Moving average which gives indication of cost of the stock in recent times becomes significant to analyse. The cost of stock in time, and time is money, gives the tolerance of human nature to hold or acquire a stock. So, the puzzle is what number of days a moving average can be meaningful for you to make a decision to buy or sell? It is still trending of the stock, based on the old data of the stockholders. Fit all the moving averages of the past against the present and see if there could be a repeat of performance.

This brings us back to market makers' decisions of move or pull back; and the published number of stockholders in the annual report.

Take ANTC, fewer than 200 stockholders and price gyrates between $30 and $60. Who is buying and selling that fast each day? AT&T(formally TCI) owns 20%, they don't sell. ANTC's fortune changed when one small stockholder told them on a annual voting slip to get into dense wavelength division multiplex business. ANTC started a joint venture with Nortec and the rest is history.

ANTC's relay rack packed dense wavelength division multiplexer may be used in each large building for distribution of computer data? Schools, government organizations and you name it, will use these communication devices. Fastest way yet, but ANTC is in the cable segment of the economy. If they ever discover the hidden market, the price of their stock will shoot through the roof. And I am that small stockholder who used to own TSX which they merged out of desperation, with the blessing or the iron will of TCI. TCI was their only customer then.
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