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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: donald sew who wrote (34626)11/2/2000 2:06:31 PM
From: PMG  Read Replies (1) of 42787
 
EXTREME SECTOR ROTATION

It is only reasonable that from time to time such shifts are occuring as the prospects of different branches change from time to time.

But the SR we see now is just a sign of the general cluelessness of investors... not a good sign. Money is still there but does not know where to go.

I have heard of a theory that says that in such a game the losses through the shifts amount higher than the gains (because everybody is chasing the event and is always too late).

This why I presume that the general trend is down plus a trading range. All upside breakout should be false ones (like the one you spotted on the DJIA). On the downside, lasting breakouts (like crashs) should not occur easily as the market is "managed".

As a consequence, you technical readings should be accurate as long as they describe only what happens in the trading range...

PMG
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