Schmedley, thank you so much for you personal experience and input to this thread. I agreed, that Ney's predictions are not in the most timely matter. (He had been bearish since August, and called the big decline one day in Sep...and it actually happened in Oct 27) I cannot blamed him because after all, he is not the exchange. But the point of Ney's theory (or just to learn the old specialist system), is to not listen to Wall Street's hypes and worries...and make decision on your own.
BTW, I dont paid for his service. I get the photocopies and telephone numbers from a person who does. But I still view the information as valuable tools.
I also like William J O'Neil very much. Not only his books, but a subscriber of IBD as well. In his book, he said that when the former market leaders lag and some low quality stock keeps on going...its a good sign of a down market. I observed that in Aug-Oct, small cap, airline stocks were going and going while tech and other leaders lagged, that signaled a downturn.
So, putting two together, I knew that a downturn into the 7000 was an inescapable fate.
Do you use O'Neil's 7% cut loss theory, or do you stick thru a correction or even double down on a stock like Ney does.
Them too are my biggest influence. But I also found O'Neil's system little outdated and prehaps a little vague in some parts of the book. Ney's book, althought outdated, still works in concept (but the stock examples are too outdated and does not provide the same comparsion to today's volatility and huge volume.)
Once again thanks for your insights and I wished to hear more from you. |
