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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 683.39+0.5%Nov 28 4:00 PM EST

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To: Follies who wrote (69785)2/21/2001 12:04:22 AM
From: Chuck Williams  Read Replies (2) of 99985
 
Yes, I'm with you. I've been considering this urgent need for capitulation. Two comments: are we really in tune enough with the average investor to when they've had it, i.e., how can we tell - definitively - when capitulation takes place (don't reference the Ameritech index, puleeze); and what if, because we're all waiting for people to leap out of windows, Mr. Market decides it's time for the train to leave the station and we're all standing there waiting to get the best seat...

I dunno. Just trying to think outside the box...

edit: Do money managers really use capitulation as a buy/sell indicator? I would hope they are using more objective criteria than that.

Chuck
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