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

To: Michael Watkins who wrote (48302)	4/27/2000 1:31:00 AM
From: DOUG H	Respond to of 99985

However if you consider the Nasdaq as the home of the new economy, and its a/d line, and now volume and breadth, look as poor as the NYSE - takes the wind out of the bullish at all costs arguements. It is not surprising to see a crappy A/D line in the Naz. There is so much smoke and mirror in that index. Interestingly enough I recall reading that something on the order of 90% of issues have a positive (=/> "accumulate"). No "sell" ratings in March as the investment side was dumping. Or should I call it window dressing? In that vein, it is interesting to say the least that investment houses stalled IPO plans when the Naz began to tank. What's it say about these issues in the first place when they won't launch an IPO unless the market is in "buying frenzy" mode? The more I learn, the more disdain I have for the Wall Street establishment.

To: Michael Watkins who wrote (48302)	4/27/2000 1:32:00 AM
From: Mike Harkness	Respond to of 99985

Michael, very good point on their being 2 a/d lines. I feel most professionals are complacent because the falling a/d line followed the market higher in 1995 leading to the huge move to our present levels. I guess it could happen again. One could make the argument that most of the interest rate sensitive close-end funds listed on the NYSE skew the a/d line when long rates are moving higher. This argument also falls apart when you factor in the NAZ a/d line. Mike