Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Terry Whitman who wrote (5080)	11/16/2001 10:51:34 AM
From: John Pitera	Read Replies (3) \| Respond to of 33421

Price by Volume--check out this pretty cool feature on the JNPR chart stockcharts.com[m,a]daclyymy[pb50!b200!i][vc60][iUb14!La12,26,9] If you look at the left x axis of the JNPR chart it shows volume by price, and in this case since May, the greatest amount of volume of buying and selling has been between 22.5 and 27.50 or so. That's important as it shows a support and resistance in a different manner. The idea is that if the greatest number of people have bought at say 25.00 and the stock has moved below that level they are underwater and many will be inclined to sell when they get back towards breakeven. Conversely if the stock price is above the greatest concentration of volume activity the buyers at say 55 in the case of THC stockcharts.com[m,a]daclyymy[pb50!b200!i][vc60][iUb14!La12,26,9] The buyers like the stock since it's gone higher., They made money the last time the stock was in that area, and so they are inclined to buy more if it comes back down towards the volume concentration area. Also all those that were thinking of buying it and did not say.... "here's my second chance" Now when a stock chart breaks through that buying concentration in either direction that gives you an additional perspective of strength and weakness of the holders. And remember these holders don't need to have EVER looked at a price chart. They still know where they bought the stock and if they are up or down on it. And obviously the buying and selling concentrations change depending upon which time frame you use. looking at almost 1 year on THC stockcharts.com[m,a]daclyymy[d20000101,20010101][pb50!b200!i][vc60][iUb14!La12,26,9] we can see that if THC falls below 37.5 -36, then their is not much dollar volume until the stock falls to the 25-27. Just another club in the golfbag. and Terry, you are certainly right about the bloodbath all along the yield curve. Message 16666443 John

To: Terry Whitman who wrote (5080)	11/16/2001 5:28:13 PM
From: isopatch	Read Replies (1) \| Respond to of 33421

Hi Terry. Maybe I'm holding the bag<G> Time will tell. But I think we're just in a counter move vs the primary trend. I'd compare it to any good Bear Market rally. Action is always straight up and powerful other wise it wouldn't force traders out of their positions and set us up for a resumption of the primary trend. Remember, I'm not in Treasuries. The huge yield spread between Treasuries and BBB corps provides an important cushion. And that has to narrow significantly. Because IF we're moving into a recovery, default risk is going to decline in a big way. And that supports prices of higher risk medium grade corps. Treasuries take the hit in the ST, if you are correct. But let's wait and see. Isopatch