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


To: marcher who wrote (47601)4/21/2000 5:36:00 PM
From: marcher  Read Replies (1) | Respond to of 99985
 
this is probably just blah, blah, blah, but---

the stock market is a conservative instrument, it conserves wealth...speculators are trespassers and must be exceptionally clever to profit...by definition nearly none of us are exceptionally clever and should avoid speculation, good luck to those who take the challenge...

seems to me that a market correction is not simply a correction of stock value (price) but a correction of the rules used to determine price...for example, when many use the same rule or set of rules (macd buy signal, moving averages, formations, etc.) to decide when to buy/sell, a stock price will increase/decrease in concert...as we have seen, after awhile this rule or set of rules fails to increase/decrease stock price and a new rule is established...the new rule is used to buy/sell and price again increases/decreases in a simple relationship...market corrections occur when the rules are exhausted and rule agreement is lost, this is the liminal time...-g-