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

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To: eddieww who wrote (29867)2/13/2002 9:02:32 AM
From: Terry Whitman   of 52237
 
Eddie,

The A/D line peaked in spring of '98. The average stock fell from that point. The major indices didn't peak until winter and spring of 2000. Quite a lag- In fact, it was I believe, the longest lagging period ever between the market indices and the A/D- causing many technicians to question the usefulness of the A/D line in modern times. Just like many questioned the continued existence of a business cycle near the height of the bubble. The A/D line was still useful- in a BIG way. I bet there's a few people who wish they had listened to the message it was sending when they bought on margin in 1999. ?g?
decisionpoint.com

The A/D line made a major low in the fall of 2000, and a higher low last September. This sell off over the last month has hardly dented it.

Liquidity- it's an enigma. A lot of that has gone into bonds and treasuries, no doubt.

Regards,
TW
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