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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: nsumir81 who wrote (10494)	2/15/2002 7:39:28 PM
From: J.T.	Read Replies (2) \| Respond to of 19219

For example, a stock moves higher during a quarter of increasing earnings (which are publicized at the END of the quarter), but the foundation and the seeds for that move are always ahead of the signs of turning points (I am talking of publicized news of turning points like such and such company beat estimates or exhibited growth) Internet stocks throw this whole statement out to the dustbins like the baby getting tossed out with the bath water... AMZN jus reported their first profit ever.. got pro-forma? And the stock has already been to the moon and back.. And when they had negative earnings but were just beating street estimates by a penny the stock was soaring... Why? Technical action and the greater fool theory of people willing to pay higher and higher prices for future earnings that would never materialize to the level of the companies projected economic growth. I am sure you are most aware of PEG... been laid to waste. Most start-ups never earn any money yet their stocks take off way ahead of zero earnings based on future prospects in time that the company may turn profitable. And when they turn profitable... the stock may already be heading back down well off the highs... Technicals, and psychology of the masses in the markets. I enjoy this discussion thoroughly and love to hear different points of view like your own. Best regards, J.T.