Jeff,
1. look at runner's statement
"High volume precedes good news coming."
He made no attempt to state that he saw buying or support at these levels. He saw a lot of shares traded and just assumed that there was a news release coming. NEVER MIND THE STOCK WENT DOWN $2.00
I have a feeling if he saw 400,000 shares traded and the stock down $8.00 he would of made the same statement.
He was trying to HYPE the stock even when high volume was a negative sign not a positive one.
Your getting pretty good at guessing what everyone meant to say, but the facts are clear to what he did say.
2. Technical analysis eliminates all of the bias and emotion involved
It assumes that all knowledge is discounted and is reflected in the current stock price. Anything that affects stock price, fundamental, political, psychological, is reflected in the current price.
3. Most of the posters on this thread don't even use T/A or F/A, they prefer to use E/A
Emotional Analysis - is when everything that happens is good. If the stock goes down on high volume, the drop in price is discounted, and the volume is said to be a positive sign that news is coming.
When the CEO releases numbers that are pitiful at best, these numbers are said to be way under what "really" is going to happen and the CEO was just trying not to get criticized.
When ALYD says that they will have up to 500 employees for FYE 1998, it is said that they can really do all the work with one person, but they hire the other 4 team members due to "quality control"
" ALYD could get by with teams of just one person. However, for quality control reasons they choose to have a maximum of five people. "
Says a lot about their confidence in their own toolset when for every one person they need, they have to hire 4 more people just in case something goes wrong.
The E/A is great on this thread. However, since the CR conference, the E/A has been dead wrong. |
