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

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To: Terry Whitman who wrote (30390)2/19/2002 6:55:07 PM
From: Robert Graham  Read Replies (1) of 52237
 
That top in the NASDAQ that I mentioned in a previous post did look to me that there will be some significant selling to come. Interesting that one characteristic of this market in periods of congestion is the presence of widening swings, IMO a sign of speculative action in the market. This speculative "engery" can skew the interpretation of the markets made by some traders.

There needs to be two components to a method that uses sentiment indicators. One is a substantial deviation from the norm. And since this deviation can last a significant period of time before it will lead to anything, price also needs to confirm.

As far as volume is concerned, in a bear market, price can move down for extended periods of time with lighter than normal volume.

The DJIA looks to be in a trading range. Distribution?

JMO.

Bob Graham
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