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Strategies & Market Trends : Ahh Canada - 2 out of 3 ain't bad -- Ignore unavailable to you. Want to Upgrade?

To: Shaw who wrote (819)	3/3/2001 9:43:54 PM
From: Shack	Respond to of 5144

SUF-I love this chart. Its just completed a very clear inverse H&S going back two years. I would love to see it retrace back to the neckline 2.70-$3.00. The risk/reward for an entry is marginal here but I will keep an eye if we get that pullback.

To: Shaw who wrote (819)	3/5/2001 10:21:27 AM
From: Cush	Read Replies (1) \| Respond to of 5144

Hi Shaw. Thinking about an answer to the questions you posed in your post. Reading *any* of the charts has become difficult in this environment, maybe because I want to see something good, and for the most part I see various shades of bad. I never rely solely on TA for a buy signal. I do sometimes rely solely on TA for a sell signal. When I see a chart I like, I do some superficial dd. Usually I search for any relevant recent news that might be affecting the chart. Usually I look at the their recent financials and last annual statement. Then I follow the trading, watch how the market depth changes. I think the simple TA I am trying to use provides accurate signals at least 80% of the time. Unfortunately, I am still struggling with the discipline to trade the sell signals, and not to anticipate the buy signals. I'm getting better. :o) If I have more thoughts about the differences in the small (penny) charts to the rest, I'll post more later. Cush

To: Shaw who wrote (819)	3/6/2001 12:34:57 AM
From: Davy Crockett	Read Replies (1) \| Respond to of 5144

Hi Shaw, What is your take on reading small cap charts (ie pennies/some thinner ones that can be manipulated on very small volume)? On a scale of 1 to 10, how valuable do you believe TA is??? hmmm... interesting question. No question that on the 'little ones' the price/volume & the charting indicators that are based on price & volume can be manipulated. I have seen many times on market depth huge bids that I have thought acted as a floor pulled with the immediate result that stops are hit as the prices swoosh down until a large cross appears & then price heads north to where they were before the cross occurred. At other times, on market depth, I have seen using BKP.to as an example, where huge bids & ask 'box' in the price in a very narrow range until the buyer or seller accomplishes their task. (Note: I don't consider BKP.to as a penny), but I found it kind of interesting to see that kind of action, when the initial hostile bid (@ a low price btw) came in from Hunt. I found it very helpful to use very long term trends (3,5 years or longer) on penny stocks in the resource sector. The chart action has an almost seasonal cycle to it. So to summarize, on the pennies I would be very leery of depending completely on T.A. I do some fundamental analysis to try & determine the underlying value of the company. Note for short to intermediate terms trades I do a perfunctory D.D., ie: news, annual reports, shares outstanding & book value of the company (if possible & if I have the time) sector rotation analysis (rising tide carries all boats in that sector). T.A. IMHO does not carry the same weight for pennies that it does for the bigger cap. companies. Regards, Peter