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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Joe Smith who wrote (50208)	4/6/2001 6:58:23 PM
From: Rande Is	Respond to of 57584

Interesting letter about viewing the markets. . . Rande: Again, thank you for your time and prompt reply. I would not waste your time...but I have struggled for a long time now specifically with time frames. I am truly trapped in that 'microscope'. My natural inclination is to be more strategic/positional....but I keep getting hypnotized by the 1/3/5/15 min time frames almost like an addiction, ergo I wanted your opinion which seems very 'balanced' to me. Thanks for your help, XXXX Those who delved into yesterday's short-cover rally. . . .thinking they saw more than what was really there can attest to the problem of looking at these markets too closely. In a post a few days ago, I pointed out that it was important that we pull back our view of the markets to 30-60 and 100 minute views of index charts. . .perhaps even daily. By doing this, we get a better view of moving averages and trends. The problem is that this trend is not short-term. So we must take a longer view in order to better see its true characteristics. Those caught trying to time the market using near-term signals for long-term positions will have their heads handed to them every time! If you are a long-term investor, then you need to be looking at the long term charts and basing your decisions off what you see there. The bursts like we saw yesterday, may look huge close-up, but they are quite insignificant when you pull back and focus on the larger picture. If you are a near term investor, then trade your plan and be happy with your near-term gains. Don't get caught in the lure of staying in too long. . . or worse, switching your near-term play to a long-term hold. And I'm talking to both longs and shorts here. When you see that profit, don't be shy about taking it. ProfitOften and set your sights to attainable goals. . . .based on THIS market. . . .not one that resides somewhere in your memory. Thanks, Rande Is