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

To: J.T. who wrote (10500)	2/15/2002 9:19:05 PM
From: nsumir81	Read Replies (1) \| Respond to of 19219

I looked again.. Again MSFT etc took off in ANTICIPATION of the earnings and their standing in the economy/business (earnings which came later that eventually reflected the price action (technicals/actions of individuals buying and selling)). They went up in ANTICIPATION of earnings. The technicals showed the ANTICIPATION of earnings. The accumulation early on was done on a fundamental basis by folks who ANTICIPATED the earnings. When other folks realized this they jumped in. Some jumped in (maybe many) for the Greater Fool theory as you say (which I agree with but call it by a different name) where the idea is to find the next higher bidder. With time, a history of price action and related technicals were formed and understood to reflect the action of the longs,shorts and those who simply said that they had enough of the price action and that it was time to move on. In the beginning, even before a stock has had its first trade, it needs and has fundamentals. The technicals (time history of price action) then follow. Then later, when say for a particular company, folks think oops this was not a good idea after all, their products WILL get obsolete, then that idea (anticipated outcome again of the future of the company) is also based on fundamentals and maybe they start to bail out. The distribution/selling is seen as technicals. The point is that the START of any major trend (I am not talking of 2 week runups or even 2 month runups but like that from say 1982 to 1990 etc) are based on ANTICIPATION of earnings/fundamentals/direction of economy and earnings. As Dominick said rightly, you and I are on the same page. Ok enough for me. Good points all. Logging off for the weekend. Now I mean it..to myself.