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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Boplicity who wrote (33015)10/11/2000 10:11:27 AM
From: mauser96  Read Replies (1) of 54805
 
The bottom may be harder to spot this time, since the NASDAQ damage is worse than the NYSE damage, and many of the good bottom indicators that use volume may not work as well on the NASDAQ. For instance Marty Zweig points out that in the period 11/12/62-6/8/88 there were 16 examples of NYSE up volume exceeding down volume by a 9:1 ratio twice in a 3 month period. In every case the market was up 3 months later. The percentage gain a year later following this simple signal was 17% to 21%, depending on the stock average measured. There is nothing in LTB&H to suggest that you shouldn't try to concentrate some of your buying when others are in a panic to sell. In fact margin liquidation means that sellers are forced to sell at the market, but buyers can wait for better prices.That puts the power into the hands of buyers.
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