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

To: J.T. who wrote (10591)	2/19/2002 6:06:02 AM
From: nsumir81	Respond to of 19219

Charts don't lie..Yep, I never disputed that. I have tried to say in various ways that charts REFLECT THE BET on fundamentals that are placed AHEAD even before a stock has had its first trade (ie had any technicals to show/display). A stock represents a fractional piece of a company. At least that is what it is supposed to be. Even before a stock has had its first trade, it reflects a company fundamentals.. whether it be fluff fundamentals, some neat concept that may never make money, some hyped up product, or something that MIGHT actually turn into something substantive (like those who bet on MSFT SUNW etc). Why in a rally such as the last one, did a stock like EMLX go up strongly and retain strength versus say some stock like NUAN that just got a pop here and there? Because imo those who bet on the fundamentals of EMLX and its sector were a lot more confident on those bets versus that for NUAN. Not because EMLX was some neat little symbol. Of course, there are always the speculators who push prices up and down each day and week who follow price action (where the 'action' or volume is). The major moves and the sustaining ones are driven by the smart money who bet AHEAD on fundamentals turning out. Other folks latch on to this, follow the SUBSEQUENT price action and you get technicals (price-time history). Then we say wow, EMLX is a strong stock technically or that it has strong technicals. That is because the smart money perceives EMLX to REPRESENT a strong company. Anyway, as you said in an earlier statement it is time to move on.