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

To: eichler who wrote (66053)	1/5/2001 8:13:51 PM
From: KevinMark	Read Replies (2) \| Respond to of 99985

Eichler, I'm speaking from a trading point of view. With that in mind, albeit a short-term trading position long and short. Traders and investors alike, saw the power of the melt-up, once news of the rate cut was announced. However, investors who were not in the market from a long perspective, before the announcement, had a VERY difficult time getting in, because of the institutions. I've never seen so many black candles in my life on the intraday as I did on Wednesday. And, all within a 30 min period. Therefore, if you did get in on the intraday dip after the melt-up, the risk/reward was not worth the effort, IMO. The next trading day was merely an exchange of investors late to the party, and institutional hedge fund traders exchanging shares as witnessed by another heavy volume day. Now that brings us to today, where we had a hefty sell-off. Basically the result of a much needed pull-back, and lack of buyers. The point here is, that even if you bought into the weakness today, you were able to get out pretty much unscathed if you were quick about it. Therefore, with the market at present levels, it's harder getting in after a breath of fresh air, versus getting out during a negative campaign, as we witnessed today. Regards, KM