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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (31071)	4/9/2000 4:53:00 AM
From: IQBAL LATIF	Read Replies (3) \| Respond to of 50167

Before that 13 days cross over for Comp on daily chart, I will closely watch these two subtle long term strong indicators if this rally has to sustain to that 13 days MA daily cross over... clearstation.com The first one above shows me the IIX, I need to see it above 580 area and rather the red line in MACD taking over the blue for that buy to generate although MACD histogram is showing me a positive accumulation signal but the long term buy is when the faster moving red crosses over the blue notice that we are also seeing a bullish or a serious resistance at this level on IIX as 13 days MA crosses the 50 days MA on the main chart, Comp depends on this and also.. clearstation.com The chart here shows that 50 days ma and 13 days MA have been taken out but the MACD red line is still below the blue and a cross is due, these two indexes have lot to do with the fortune of Comp and I totally agree that the point about declining double top that I also mentioned earlier when this whole correction began is valid although the significance gets seriously eroded once 1435 on interday basis was rung on SPM and we held it well, in serious spikes like this once gets a clear indication of lack of actual selling of underlying equities even in extreme index movements, that is again due to small investors total lack of interest in daily trading, the main portfolios under 401 K plans are rarely touched, this 'noise' impacts the momentum traders and they thoroughly get wiped out in these key moves, this is trimming exercise for markets long jogs as we call them, and most important if this "gambling instincts' of 30 $ moves on some stock in signal day is to be maintained what moves up comes down with equal ferocity in this 2 trillion$ 'sector' of this maniac market, that speculative excesses is self correcting and sometime undergoes very deep corrections. The overall market the other CL JNJ or PGs the moment they are short are taken to gallows, ask questions later shoot first instinct of the market is also a healthy tradition which is well honored by the present market makers. These time honored traditions are the important pedestals on which this market stands, deflower them and you get Nikkei and real estate loans with banks exposure to equities coming haunting within few years, this very volatility keeps the Banks out of equity business and the businesses like GM who are totally capitalized at 56Billion$ with 44 billions $ of market equity exposure are selling the real business at a huge discount, so if the flap of their business disappears the market runs to value their actual business in the name of flight to quality.. This aspect of market is extremely important for 'markets' to stay up here that is DOW above 9800, the safety valve of this 'big bubble' that our friends call it, does not lead to that "speculative bubble" that mauy lead the entire 11 trillon $ market to correct by 40%, the correction of 2 trillion speculative sector by 30-35% last week and the spiking out nature of this sector and associated volatility in my opinion is the corner stone of this present strength that has destroyed a lot of smart short investors, we need to look at the underlying causes, identify them and work on them diligently, even if we are able to read 20% right we will be far ahead of those who with myopic self interests keep harping about the low that never came. Bottom line is that real pain is going to start when these corrections become longer phenomenon that extends far beyond a single quarters and the earnings start falling short, as far the earnings growth innovative accounting can justify 220$ for NOK we will see that at 180 Nok may be a buy, this is the lesson I have learnt.. All the above looks a casual note but I think that market philosophy that overlooks these small little facts is out of sync with reality, these small re-visitation to facts is the corner stone of our strength here.. I am writing little but do enjoy my exchange with you.. Love and best regards as always..