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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Robert Rose who wrote (21138)7/26/1999 6:36:00 PM
From: donald sew  Read Replies (1) | Respond to of 99985
 
Hi Robert,

I dont know if I could give a fundamental explaination but from the statistics I have been compiling from my CLASS signals, it is common that a negated signal responds with a strong move in the opposite direction of the signal. So a NEGATED BUY signal is a hint of strong selling to continue. I also need to explain the statistics. For the last 3 years I only got about 10 of these negated signals on the various indices I watch, but plenty on individual stocks, so statistically it is questionable since I do not have enough data for one specific INDEX like the NAZ.

It is somewhat common for an immediate response but not totally necessary; however if the strong selling does not continue within 5 days then the strong selloff after a negated BUY signal will probably not happen.

Hope it cleared up some of your questions.