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To: mishedlo who wrote (9902)	3/7/2001 5:54:57 PM
From: hobo	Respond to of 10876

LOL... I just pasted what one of the Worden's brother expressed... meanwhile I keep selling calls here and there... Of course I do not take offense, how could I ? I just sold some calls on CIEN (today) and BRCD (yesterday) -GGG- so please, take the market down. The puts (hopefully), is on those co's that are beginning to go higher (i.e. the gas and natural resources... seriously take a look at their charts). Technology ? I keep selling calls (carefully, as some are jumping).. but do I think this is the bottom ? frankly I do not know, and I just play it as I see it... Having said that, I do not share the belief that we are about to enter some kind of depression near-end-of-the-financial-world as we know it. A recession, yes, very possible, a depression ? I doubt it. Actually, I would be extremely happy if we were to enter a depression style event in the real estate market as I would step in to buy the industrial stuff... Reading Jay Chugs at the Financial Collapse Thread, has made me curious to take a peak at Hong Kong, but I suspect that RE is extremely expensive over there.... alternatively, I think I will take a look at the Phoenix-Scottsdale area, but I am afraid, again, I am already too late as industrial land is already too expensive. So, please let the depression come in... but I doubt it will happen. In any event, I have no debt, so I am not worried and I am trying to learn patience -gg-

To: mishedlo who wrote (9902)	3/7/2001 8:51:42 PM
From: hobo	Read Replies (2) \| Respond to of 10876

Mish, In fairness to the Worden Bros, (whom I quoted in an earlier post), I am quoting them again. This time, as soon as I read the relevant lines, I thought of you. Read on and enjoy: ___________________________ The Worden Report (Wednesday, March 7, 2001) Bopping Around at Bottoms (From the Worden Report of 2-18-00) Gentlemen: Reviewing the BOP action with BRKA, I find this confusing. The price is going up, the volume is going up and the BOP shows in red below the zero line. It would seem that with price and volume going up, accumulation would be taking place and the color would be green above the zero line. Can you help me understand the meaning of this red line below the zero line in this instance? -Jack I get emails asking similar questions about BOP () all the time, so many that I don't have time to answer them all. Many new Users are confused by the concept of divergence or disparity, which is to say the ability of an indicator to directly contradict price movement. This is the most valuable attribute of BOP. It can call the price a liar. BOP may show intense selling when the price is rising. Or vice versa. In this case, the price isn't exactly rising. When you wrote your email on Thursday, the price was in the second day of a 2-day bounce within a downtrend that had been dragging on for almost a year. But it is true that during that 2-day rise, BOP was red as a beet. Volume was high, but that really has nothing to do with the price of beets in South Dakota. The point is that BOP is what BOP is. It could be green, it could be yellow, but it is red. Red implies selling. Whether the price is rising or falling and whether volume is high or low, red BOP still implies selling. I hate to tell you, Jack, but here comes the complicated part. The pattern you picked out has elements that often constitute a “shakeout” bottom. This is where, after a long decline, a significant number of buyers suddenly notice the market has been falling for a year - and they panic! They start screaming for their mothers and purge their pockets desperately of stock certificates. As they dump their stocks, there is a final plunge on humongous volume, and yes, BOP turns redder than a hot poker. As the stock moves from weak hands to strong hands, the intensity of the selling wanes. Volume subsides, BOP selling contracts and the price starts up. Birds can be heard chirping. However, after a few days, the volume has dried up to next-to- nothing and the price rolls over for a “test” of the low. If volume stays light this may be the making of a bottom - but not necessarily. There can be a series of these climax bottoms, each at a lower level. There is no way to know for sure. But one thing you can do is stay clear and don't get caught selling short. And don't yell for your mother. It's so undignified. -DW _________________________________________________ () The BOP or Balance of Power indicator is proprietary of the Worden Bros. Here is a brief explanation of its meaning: (there is more to it, but one would require a copy of the charts from the program to take advantage of the lengthier explanation. Here it is: ___________ Balance of Power BOP is the exclusive intellectual property of Worden Brothers, Inc. It was developed by Don Worden, a leading technical innovator and writer dating back to the nineteen fifties. In 1994 he was the recipient of the award for significant contribution to technical analysis, given annually by the Market Technicians Association. BOP tells you whether the underlying action in the trading of a stock is characterized by systematic buying (accumulation) or systematic selling (distribution). The single most definitive and valuable characteristic of BOP is a pronounced ability to contradict price movement. BOP goes far beyond the "divergences" that many technical indicators are capable of. In divergence analysis, the price and the indicator tend to move together. A divergence is detected when, for example, the price makes a new high and the indicator fails to confirm. BOP is capable of outright contradiction. Thus, while the price is attaining new highs, BOP may very well be attaining new lows. It is not unusual for BOP to move in the exact opposite direction of price. BOP is plotted above and below a zero line. However, it is not an oscillator. It does not swing up and down with the price. It goes its own way, often quite independent of price movement. When BOP is above the zero line, it is depicting systematic buying. When it is below the line, it is revealing systematic selling. ________________________________________________ One of the things I like about the much improved TC2000 (they now offer real time charting too), is that their commentary has never been "extreme" neither "exhuberant" nor "manic depressive". They seem to be objective and never have I seen them lose their cool. They simply interprete what the chart tells them. Are they infallible ? certainly not. All they do is give their opinion and interpretation. and I have had good "finds" using this program, I recommend it. Their site : tc2000.com Edit; Here are a couple of sites explaining the BOP more extensively: (it includes charts too) tc2000.com tc2000.com