Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Jdaasoc who wrote (6841)	10/27/2000 6:51:49 PM
From: Zeev Hed	Respond to of 30051

John, the trouble with that approach, your "model" does not include a real period of a "bear market". In a bear market the 200 day moving average serves as an overhead resistance, in a bull market the same line serves as support. Since early in 1990, we have been in a "secular bull", thus you find these averages as support, and the various indices rarely go under their 200 DMA, these are the "buying opportunities. My tenet is that we are gradually moving into a secular bear market, and thus will breach these supports more often until we will get stuck under them and for a period, the 200 DMA will serve as the line to which rallies will try and reach (and often stay above for few days, just to convert few bears to bulls). Zeev irrevolute.iuma.com