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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?


To: lee kramer who wrote (72671)11/21/1999 10:52:00 PM
From: stan s.  Read Replies (1) | Respond to of 120523
 
Advance decline line. Hi Lee, I think using it as a divergence is a valid use. In my own sporadic view of it, I tend to ignore it until it shows strength...thus giving added fuel for a real surge on the Naz...and then, as you alluded to, it seems to taper off before the Naz proper does, giving a warning of sorts. I like the analogy of a yellow warning sign, an impending slowdown.

I think a lot of perennial bears have given so much weight to declining stocks the past few years that this has, in part, created their scenario of a nuclear winter on the horizon for stocks, at least in the case of the tech sector. Perhaps they fail to see that innovation carries risk and failure often accompanies that risk...but often so does success.

Just rambling. By the way I enjoy your posts.

Futures were up last I checked.

Stan