Tomato, please let me preface this with the statement that I am arguing for the sake of clarification and learning, not to prove that I am right and you are wrong :)
You say you would only buy when the stochastics goes under 10 and turns up -- back testing on that idea, you would not buy MLNM because it hasn't hit that point in the last 6 months, correct?
10,50,and 100 day moving averages - I believe this sort of observation has to be tempered by market realities, and right now the MARKET SUCKS! I think the entire sector is under heavy accumulation and pressure from the market makers. They know, as you and I know, that the lid will blow off this technology in the next few years. Their goal right now is to get their paws on as many shares as possible to maximize future earnings.
I think things such as the "election", "recession", "warnings" and "analyst's reports" are used as excuses to short a stock down, scare some of the little guys and grab some more shares.
As soon as they have enough and the economy loosens up again so people don't THINK as much before they part with a hard earned dollar, all of those analysts reports are going to turn rosy and this sector will boom just like the .coms did.
The difference is that this sector has intrinsic value and the move will probably be even stronger.
Paula wipes brow and steps off the soapbox...
Now back to TA - you cited volume, I looked at the volume every time the stock gets pushed down, it is decreasing, there are fewer shares that can be shaken loose.
I just discovered that the frames on big charts screws up a link so will have to link directly to my site:
MLNM chart study 02/02/01
see post #14 at spiritsites.com
I've got comments running all down the sides of the charts showing how I interpret them.
Note, I'm only using a few indicators, so if you know of other indicators that either confirm or disprove what I'm seeing here, please comment.
Can anyone explain the difference in the money flow intraday one minute vs intraday 5 minute? One is markedly positive, the other negative.
It looked like a stand off at the end of the day with one volume interest going in and another trying to short the stock down for day end.
OK,now that I've either totally humiliated myself or impressed the heck out of you - LOL -
Comments anyone? |
