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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Sir Francis Drake who wrote (3149)	8/5/1999 3:31:00 PM
From: Ken W	Read Replies (1) \| Respond to of 10027

Morgan, Seems Knight is close to it's day high again. Like I said yesterday, we really need for this stock to close within a few fractions of the intraday high for me (and probably others who watch candlesticks) to confirm a true reversal. Still watching and waiting to get in. Ken

To: Sir Francis Drake who wrote (3149)	8/5/1999 3:40:00 PM
From: Herschel Rubin	Read Replies (1) \| Respond to of 10027

Yes, the action of the markets seems to obey the Heisenberg Principle (the very act of measuring a phenomenon alters the behavior of the phenomenon). In the case of sidelined buyers waiting for a "selloff" - there may not be a severe one as we would expect, simply because buyers are all anticipating a selloff and are ready to plunge in on the signs of a selloff. If enough are convinced that today (or Tuesday this week) is the selloff, they will perterb the results and short-circuit a selloff. After all, the fundamentals causing the current market selloff are NOTHING compared to the Hong Kong Flu that hit in September 1997 and the Asian->Latin->Russian currency devaluations (Asian Flu II) that bottomed the markets October 8, 1998. Today, we have relatively stable interest rates, low inflation, a growing economy, and the dollar is strong on a historical basis. Recession does not seem in the cards. xbrent's comments about stops set all over the place is indeed a factor. Also heavy margin buying in the internets (and NITE) has triggered snowballing margin calls. Re: The Heisenberg Principle - It seems the primary reason why some elementary technical indicators like the 200 DMA "seem" to work is because so many people watch that indicator and, hence, it becomes a self-fulfilling prophecy. After all, the stock and its fundamentals do not "know" where its 200 DMA is, but traders do. What is magical about the 200 day length? Why not the 50-day? I've seen so many traders who pick one moving average length, and when that doesn't work for them, they try another, or try the exponential EMA.