MDA - Market Direction Analysis Message Board

STOCKTALK

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.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 685.33

+1.1%

Jan 21 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LTK007 who wrote (51876)	5/24/2000 2:43:00 AM
From: westes	Read Replies (3) of 99985

Does anyone believe that this particular market's 200-day moving averages mean anything at all, other than something purely psychological? The entire move up was one huge asset bubble. All MAs derived from that bubble inherit the characteristics of that bubble. They are by definition the result of a speculation that is in the process of being wiped clean. I would frankly be extremely discouraged, and I would fear for the future health of this market, and our economy, if the 200 day MAs weren't sliced through like butter and long forgotten. They aren't the place we should be hoping for a healthy bottom. The rising bottom of the Oct 98 trendline would be a nice place to bottom. That's still an overvalued market, but I think it is a level of speculation that we can comfortably survive. Anything between 2800 and 2000 is probably a reasonable place. Anything below 2000 and I predict you will see a swarm of buyers descend on this market like locust on a fresh crop. Personally I don't think we stay anywhere near 2000 too long, if we even get there.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next