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

To: Timothy Liu who wrote (22367)	8/6/1999 5:03:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 99985

Good points Timothy... I agree that many of us have cash on the sidelines but many others are being hit with margin calls... We'll have to see how this balances out... With the advent of SI and threads like this (Thanks LG), investors and traders are better informed... As such, there should be a good amount of cash that won't be caught in a Bear Trap meat grinder... That's why I'm using the 5 day MA crossover of the 13 day MA as a buy signal... Until that happens, I'm on the sidelines... Jim

To: Timothy Liu who wrote (22367)	8/6/1999 6:06:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 99985

OT Timothy, your definition does not represent the J6P which I defined. It means Joe Six Pack Markets only Go Up but it refers to those market participants who trust the media, their friendly broker, and all other analysts strategist like Ralphy, Abby, GOGO Gaz, Kadlow, Joye B, Maria <GG> etc., and believe in budget surpluses and that this administration never lies. They usually contribute monthly to their 401K because in the past the market made them rich on paper and do not sell as they need to pay taxes but borrow on their credit card because they will pay with profits in the market. Those people are not only blue collar worker but also well educated people who are clueless about the working of a stock market. Did I mentioned that they are also arrogant and think they know it all?? <GG> BWDIK Haim

To: Timothy Liu who wrote (22367)	8/7/1999 11:24:00 AM
From: Fun-da-Mental#1	Read Replies (1) \| Respond to of 99985

Timothy: interesting point about cash on the sidelines mitigating a crash. Maybe that helps explain why sentiment is a contrary indicator, if positive sentiment = fully invested, and negative sentiment = cashed out. But it depends how soon they decide to buy back in. The more uncertain they are, the longer they wait, the worse it will get. The market being low is an incentive to buy, but the market going low is an incentive to sell. So if it is low and going lower which urge wins out? (For those with a math background P" = AP + BP' where P is the price can have either periodic or exponential solutions...) Fun-da-Mental