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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 671.910.0%Nov 14 4:00 PM EST
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To: Richard Ruscio who wrote (7041)2/25/1999 9:28:00 PM
From: StockOperator  Read Replies (2) of 99985
 
Richard,

Why is COB Friday any different than any other weekly single point in time - 2:35PM on Tuesday, for example.

Here's a simple way to look at it. IBM closed yesterday at 173.56. Today's intraday range was 173.93-169.31. So asking your same question, does it matter more where this stock trades at 10:30AM or at the close of the day. In the morning it may have been 170. When you compare 170 to yesterday's close you see a stock that lost 3.5 dollars a share in one day. An obvious downtrend. However, IBM closed today at 173.62. A gain of six cents from yesterday's close. There's a big difference between a loss of 3.5 to a stock that completely reverses by the end of the day to gain six cents. Daily prices and weekly prices can be viewed the same way. My view of the long term trend is no different. If IBM closed last Friday at 171.62 and happens to close tomorrow (Friday) at 167. In the context of rising interest rates, an advance-decline line that couldn't get much uglier, plus the DOW's failed attempt to break this consolidation. This could very well be another clue that prices are beginning to unravel.

So I'm basically viewing the trend from a different time frame. This especially helps during times like these, when both the short term and intermediate term trends are either negative or close to breaking.

I hope this helps.

SO
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