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

To: American Spirit who wrote (78075)	6/6/2001 11:25:56 AM
From: HairBall	Respond to of 99985

American Spirit: Irony, if everyone think it's time to get in or out at the same time then the opposite becomes true (at least these days). You get oversold or overbought conditions. The market has ALWAYS had overbought and oversold conditions AND on different time scales. Regards, LG

To: American Spirit who wrote (78075)	6/6/2001 5:54:20 PM
From: Robert Scott	Respond to of 99985

True but psychology plays such a huge role that I believe people will always sell near the bottoms and buy near the tops. I remember early April and fully aware of the contrary indicators, I was scared to death. I had been tracking the put/call ratio, the magazine headlines, investor sentiment, volume and what was going on with the brokerages (layoff). I saw the market crater on April 4th and held my breath, then it bounced big on April 5th. On April 6th it sold off again and near the end of the day, I committed. Now I had lost alot of money up till that point but I had paid off margin and was ready to commit. At that point CSCO was down to the 13's, JDSU to the 14's, SUNW, and a bunch of other solid comapnies that were down 85-90%. These situations are usually very profitable in the intermediate to long term so I plunged in (actually to average down). We'll see if it pays off in the long run but I feel pretty comfortable with that decision.