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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (31677)	3/7/2002 9:58:52 AM
From: TechTrader42	Read Replies (4) \| Respond to of 52237

MSFT was posted as a position yesterday, along with some other techs. I would have said it was a sell. The issue I raised in my previous note wasn't whether TA worked; it was whether MSFT's chart indicated it was worth buying or holding. I don't think it indicated any such thing. I think there's a temptation to look at the rising indexes on strong up days, ignore the charts or endeavor to put as positive a spin on them as possible, and buy -- in other words to abandon TA and jump on the bandwagon. It's illogical. DELL was mentioned yesterday, too, as a stock that was held in a portfolio. There was a shooting star two days ago. It was at the upper Bollinger band. MACD and stochastics were giving sell signals. The charts gave sell signals. So why hold it, from a purely technical standpoint? From such a standpoint, it was a sell, in my opinion. I stress the "in my opinion," because there are zillions of other indicators. But I don't see a strong case for holding or buying it -- or a lot of other techs. I think there's a temptation to listen to all the ravings about a new bull market, look at the soaring indexes and believe the techs are going to start doing what they did in the 90s again. Some traders get caught up in the hype, and there's a lot of hype out there. It could be a belief based on hope and habit -- not on charts, not on fundamentals.