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Pastimes : Techride -- Ignore unavailable to you. Want to Upgrade?

To: Joana Tides who wrote (7226)	3/21/2000 7:12:00 PM
From: faqsnlojiks	Respond to of 7442

biz.yahoo.com Thank you Joanie...I always love good news. :) I'm going to tell you...and whoever else might be reading this...a little secret. Some people will tell you that TA (Technical Analysis) is everything from witchcraft to gambling. They see a chart and think that all it takes is a good or bad news story to cause the chart to move. But you can't predict the spike because you can't predict the news! Ok..yes...good news can make a stock (and it's chart) spike...and bad news can make it tank. But most people have this all wrong. (here's the "secret" part): The news doesn't predict the chart...the chart predicts the news.* SERIOUSLY! Had you heard of VVVI before I brought it up? I would bet not. And looking at the daily volume, not too many other people had heard of it either. The thread here on SI was dead, and if you look at the past news stories...well there is not much there. I'll tell you how it came to my attention. I was sitting here bored one night and I thought I would do a little perusing of certain chart formations that I had been having pretty good luck with lately. I had a pretty good idea that I wanted to stay in the semiconductor sector and I was looking for a stock that had some room to run. So as I'm screening all of these stocks that met this basic criteria, one of them fit better than the rest. VVVI. It had a great chart (if you want me to get into the details of that, you'll need to read "Point and Figure Charting" by Tom Dorsey, and I'll need a few days to compose the message!), it was a semi stock, and it had pulled back to a price I found reasonable, leaving room to run. The chart showed strength...I felt something was up...I bought, and then the news was released. That's how it happens with my winners. :) Let me throw this disclaimer out there. I scan the fundamentals of a stock before I buy it. I probably don't do that as well as I should...but I rarely buy based only* on TA. I'm sure if I did, I would get slaughtered. Mr. Dorsey...in his book says, "The fundamentals tell you what stock to buy. The chart tells you when to buy.". I couldn't agree more. Good luck and 909's to all. -Joe