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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: LastShadow who wrote (7257)4/7/1998 2:13:00 PM
From: ViperChick Secret Agent 006.9  Read Replies (1) of 120523
 
okay

after mitzi directed me to the appropriate post...I can talk with some sensibility

try to follow my thinking ...even though I know it isnt spelled out step by step...it never is with me

Understand
that what we are looking at in my post is the cumulatively compounded percentage
gain - therefore, the market would necessatrily be down in order to support a
substantial price rise of the equities. Does this make sense? The stock prices would
be lower in order to generate the biggest % gain. So I believe that we are talking
about the same thing. If the market dropped 200 points, would that not be a time to
go long?


okay
here is what you are talking about in your first post

The exchanges are traditionally closed for nine holidays. Data collected over the last 50
years has found that the two days prior to a holiday are very bullish. We suspect this is
due to traders lightening up their short side to cover themselves against unexpected
good news over the long weekend.
Historically,
********the gains from just the pre holiday periods*********


surpassed the gain by the market for the entire 50 years.

At any rate, the cumulatively compounded percentage market gain for Good Friday is
as follows:

Day 1 (April 8) 7.3%
Day 2 (April 9) 17.8%

The plan would be to go long on any stock you are looking to enter early on either day.



this is what was in the back of my mind....

these two thoughts dont go hand in hand....

you can be down 100 points and be bullish at the end of the day....if it is only intraday down 100 points....and you buy at the low and you sell at the high because it is a bullish day

(although would you call it a bullish day if it goes down 100 and comes back to down 50)

this is different than saying.....

the market is going to be down 100 points and its going to be a negative day...

that is NOT A BULLISH DAY

take today for instance...so far it is not a bullish day.....but if you bought now and we ended up in a bullish day..then you would make good money....

HL CAMP is saying these days are NEGATIVE whereas your source says POSITIVE

they are opposed...as I see it....

true...one is using alot more historical data....

your source is using 50 years of data for more than just this holiday

Camp is using limited data for JUST THIS HOLIDAY

and I dont see how you can reconcile the two effects...either the day is bullish or bearish (or both are wrong and its flat)

so I guess i am missing something
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