Hi Bill; I have nothing aginst TA..it's usefull and a good
tool..but it's more a short term tool than a long term one,
and as more and more people use it you have to introduce
new angles to it. A tool like TA loses it's edge when every
one gets on to it, if too many use the same tactic, then
it gets worthless unless you find a way to suplement it,
I think looking at the WEBS and London ADRS can be extra
leverage like adding a spy glass to the naked eye.
How clear can TA be..if we just use NYSE or the NAZ to
put input data..also behind the scene most of our big stocks
often trade abroad, msft intc T GE and all sell not only on
in Americia..but on other exchages as well..what if the
volume and price abroad differ from the VP at home,
ah there is the rub garbage in garbage out..
The other day two well known local brokers upgraded the largest
cap stock on the London exchange, it sells over here as an ADR,
I cheched the London price and the local price..low and behold
the local price was a wholec dollor above it's going price in
London ( but with much less volume ) you can belive this or not
but thoes Brokers took advantage of the situation, touted the stock
then sold it off and pocketed the spread, meanwhile the TA
on that ADR said it would go up, but not the TA of the same
underling stock in London, if you TA a stoch like GE..
better TA it both places and make sure they match,
there is no ethics on wall street..it's run by the law of the jungle, the so called ethics is just window dressing.
The Dow can go up here and at the same time the indepentent stocks
in it..if weighted the same on the London exchance could be falling,
all at the same time..what would this mean ? IT happens :-)
The Big Boys can trade both exchangers at the same time too..
which one would lead the other..might depend on the spread and
volume..I have not figured it out yet, as I'v just discovered this
hidden world, but I'm working on it. To make it even more intreging
you can bet it's not just that simple..the other part of the
equation would be what direction is the rate of currancy
exchange moving at that time..leave that out of the picture
and you get what we call in Navigation a cocked hat.
What I'm digging for, but have not got yet..is were and
how are the BIG money BOYS moving their money around,
you can bet thats the shirt tail to get a hold on,
As going aginst the movers and shakers is not very wise.
Looking at it I became aware of just how little I know,
or thought I knew, and that scared the be-dazzle out of me.
I conclude that there is not one
BROKER or ANAL-SYST you can really trust..any of them may lead you one way , say to BUY while they fully well know they have to unwind a position in the same stock.
Jim
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