SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Technical analysis for shorts & longs
SPY 681.86-0.7%Dec 31 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Thomas C (Hijacked) who wrote (16179)5/27/1998 10:20:00 PM
From: j g cordes  Read Replies (1) of 69344
 
Tom, I'm a technical analyst with fairly good horse sense... which is a poor lead in to some practical thoughts on the subject of trading stocks to make money. I'm responding in part to your post but more to the need we sometimes have of making the big call.. picking 5000 when we're at 9200, or 9200 when we're at 5000.

A more blunt lead is_ it doesn't matter if the dow average goes to 11,000 next month or to 5,000.

What matters is where is the stock you're in going after you buy it, or after you short it? Few of us actually trade an average... and who is putting real money on the dow going that low... those are pretty distant targets. The OEX is at 532, do they even have 300-400, 450 puts? Of course you could short the market, there's no strike price in that game.

Trading gets down to specifics very quickly and many stocks run counter to the averages. Remember its been fundamental earnings warnings that have triggered technical retracements.

From a practical standpoint, the averages can help a trade, especially if a stock is overbought or oversold. The downdrafts of the last three days have accelerated down trending stocks, stalled the progress of stocks trending up AND made already oversold stocks ripe candidates for reversal plays.

Last, technical and fundamental go hand in hand.. its like the old argument of mind body.. they're just two extensions of logic, each inadequate to explain the whole.

Jim

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News