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Strategies & Market Trends : Group Therapy -- Ignore unavailable to you. Want to Upgrade?

To: country boy who wrote (2868)	1/24/2001 2:34:09 AM
From: E. Graphs	Read Replies (3) \| Respond to of 4564

Hi Country Boy, I prefer to use simple moving averages. I prefer to buy stocks trading above their 200dma. Stocks trading below their 200dma are said to be in bear territory and have been known to go much lower. I have dabbled in some stocks below [while s/t trading or if the sector is recovering as a whole and/or if the stock is a laggard] but it's usually much easier to make progress and hold gains above the 200dma and so I think it is a good rule. Basically, I like to see the shorter time frame crossing over the longer one, say 50dma over 200dma, because this shows me steady accumulation over time and a good base of new strong support. That said, I have found that this market is warped. IMHO there hasn't been very much time put into basing. A lot of money is being made under the 200dma and stocks go up against downgrades, slowdown, and profit warnings from companies, as if planned. I think mutual funds are the reason. IMHO, the market is just a huge Social Security Fund now. They are afraid to let it fall any further and lose money coming in, so they rush to make it look healed, but it has continued crash written all over it. Guess we'll see what happens. Good Luck Trading E