Thanks, Paul. I'm aware of the "on balance" function, but there are two issues here. One is pure madness on my part (or a personality quirk) - I like to do my own calculations, and I don't trust the accuracy of some of these published numbers (I'm not into conspiracy here, simply many times I found mistakes). Second, the correlation with the LII I think MIGHT show me a pattern - for example, whenever GSCO *appears* to be accumulating shares based on the LII activity, there is wild selling through INCA that shows up on T&S etc. for a particular stock (I'm just using GSCO as an example). Interesting little things that might give me an insight into some of the kinds of goings on that may be predictive of future price action. Then again, this may be all a wild goose chase, and shadowboxing, and is all nonsense. But you never know until you try. I'll be happy to share my results, such as they may be, though it might take some time. Also, note that it's probably individual to a particular stock, and may not apply to a different stock.
My reasoning is simple: I select a handful of stocks that I study the hell out of. I figure that the better I know them, the higher will be the % of successful trades. Perhaps just jumping on whatever is hot at the moment is a better idea, but I like the feeling of control I get from knowing a stock inside out (which is not to say that any stock remains static in it's character; there is always change, and patterns change, and you have to constantly stay flexible, and be willing to quickly adjust). So, I pick 6 stocks to study, and then I trade whatever is best that day. Concentrate, don't get distracted by the fact that YHOO went up by 50%, and regret that I'm not there. I tried that. It didn't work for me. Now, I don't care that you can make 100% in one day on some issue. I care about consistent 5% daily, reliably, like clockwork. Then again, perhaps I'm just slow.
Morgan |
