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

To: Zeev Hed who wrote (61647)	10/31/2000 2:50:34 PM
From: ahhaha	Respond to of 99985

Shoulda coulda had nothing to do with my comments. There is no such thing as a "contrary low". That isn't TA, is it. Valuations never fully recovered after the '74 trough until '91. Investors demanded a large premium in light of the economic environment. The stock market didn't bottom in '82, that was just a reaction low. It bottomed in Sept. '81. Money flow showed that the '82 downside action starting in February diverged significantly from money flow, i.e., money flowed in but price fell. It was much like the "bear market" that we've had since Sept 1, a completely psychological affair. In Aug '82 the FED changed the psychology, so the market moved dynamically reflecting the inelastic state caused by the removal of marginal supply that had been removed earlier by the quiet influx of funds.