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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 681.44+1.6%Nov 10 4:00 PM EST

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To: Jerry Olson who wrote (8771)3/23/1999 9:42:00 AM
From: dclapp  Read Replies (1) of 99985
 
>> except people are wealthier today than ever before...and getting richer...

they better be!...personal savings is at an all-time low; personal debt is incredibly high! I'm not sure how people can be "getting richer" when corporate earnings are declining, the farming sector is damn near bankrupt, and so on...

>>you know the buy & hold crowd??? no sellers Doug..NONE!!!!

um...gee...doesn't the A/D line show that they are more sellers than buyers for most stocks??? Isn't that why the line is going down? Because people are selling??? You must mean the "buy & hold crowd" in the few stocks (fewer all the time) that are going <<up>>, right? :-)

>> i look at my long term portfolio...the past 5 years have been amazing...simply amazing...

It's said that people "don't learn from history." In fact, they do; they learn from "recent history," as you have. That's why markets always get overvalued over time: people learn very well that "it always goes up," and have visceral experience to base that conclusion on.

>> buy the dips-crashes-corrections----and only buy the stocks that are going UP<g>.........:>}

Some people always will do that. Sometimes they're not in the majority :-) As is the case in the majority of stocks, which continue to trend down.

Finally, isn't "only buy stocks that are going up" and "buy the dips," etc. kinda...ah...contradictory?? Or do you mean "buy up-ticks on downward trends on the expectation that the downward trend will end"?? If so, that's a bit different, eh?

doug
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