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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Chris who wrote (14666)8/18/1998 12:52:00 PM
From: Robert Graham  Read Replies (2) of 42787
 
Interesting observation I have come across. One key question to the day trader and for that matter any short term trader is figuring out when the trend is "real" and will continue. This has been on the minds of many in the recent past with the market acting the way it has been. For example, on an intraday basis, one factor is time of day. If the trend starts during certain time periods of the day, then it is more likely to follow through than at other times during the day.

Another factor is what industry groups and even particular stocks are leading the advance. When I saw some of the more classic groups like technnology and financials leading yesterday's advance along with some new groups the money has been moving to over time like telcoms, then I placed more emphasis on the rally that we say yesterday. So I am not surprised at this follow through. I imagine a move down by the market can be interpreted in the same way.

Bob Graham
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