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

To: Boplicity who wrote (67353)	1/20/2001 5:42:39 PM
From: bobby beara	Read Replies (1) \| Respond to of 99985

>>>Frankly, all one is seeing when one looks at a chart is past market psychology, which should be used lightly as prediction tool. I can't stress the word lightly enough too>>> your right dood, thats why most of us regular chart chasers on this thread, have back up 900 #'s to the jamaican chick and madame zelda -g- All one has to do is watch the tape and see how the drops are being bought to see the funds supporting this rally. Sure we are due for some selling, as happens in all rallies, and the amount of selling we get will be a very good indication of the health of the rally, but this rally is supported by more then just fund managers money. It's supported by an old bull argument shud i believe you or take this chart read on the lighter side of life -g-

To: Boplicity who wrote (67353)	1/20/2001 6:56:12 PM
From: Square_Dealings	Read Replies (1) \| Respond to of 99985

"You don't fight the FED." I'm not shorting anything now, but just because Al Greenspan lowered rates 50 bpts doesn't mean I'm going long either. Its a little bit like saying I've got some property in the Florida swamps for sale at $100k/ acre and even though everyone knows its not worth it, the seller is offering to throw in a free boat if you buy now. I'm not buying the boat (panic rate cuts to save Al's buddies at the bank). Talk about weak reasons to buy stocks, "dont fight the Fed" rates right up there with the best of them. The similarities between the Japanese bubble and the 1999 Nazdaq are easy, both were manias where stock prices became disconnected from any measure of value. The only reason to own stocks should be to get a return on your investment (earnings or dividends) that exceed fixed income returns. Also you should be aware that commercial traders are definitely fighting the fed right now. This weeks commitments of traders report shows the commercials net shorts increasing again to record levels on the SP500 and the short positions increased significantly on the DOW. They also increased short positions on US Treasury notes. So not everyone is singing the same mantra to not fight the Fed. good luck though M.