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Strategies & Market Trends : MDA - Market Direction Analysis

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Nov 21 4:00 PM EST

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To: HairBall who wrote (9380)	3/30/1999 10:02:00 AM
From: dclapp	Read Replies (1) of 99985

LG and all, Speaking of "market direction," here's the only "sure-fire" method that I've found to make money. It's brainlessly simple, and I'd invite comments on it. Here it is: on days when a Dow component opens late because of good or bad corporate news (HWP a while back on their "splitting the company," KO today on an earnings warning), go long or short DIA before the pop-up or down when the stock opens and is reflected in DIA. Caveats: -- other stocks may/will buffer the effect of that single stock -- you need to buy/short before the stock in question opens -- because the DIA percent swing may be small, you need to really put some financial muscle into the long/short position. -- a conservative follow-up is to close the position soon after the stock opens and is reflected in DIA. If ya "feel lucky" ("Do you, punk?" :-) you can hold to see if the market continues to track in your desired direction. Fine-tuning is possible, i.e. watching to see if unopened stock will move in the same direction as the rest of the market, etc. You won't retire in Maui using this, but it's good for a few somaleans here and there. doug

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