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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (47859)	7/27/2002 3:54:11 PM
From: bcrafty	Read Replies (1) \| Respond to of 209892

Allan, here are my ideas as to why people are "eager to enter new trades in non-tech." First of all, nobody can understand another's trading decisions until he knows the trader's timeframe (and targets, if any). Is he trading the 15 minute charts? The hourly? The daily? How long is he anticipating holding those trades, a few minutes? hours? days? etc. If people made their timeframes (as well as holding periods) clearer in their posts, we would understand their trading decisions better. For example, if someone said "I went long Wednesday on DIA for a wiggle" then you would know how to interpret him as opposed to a comment such as "I went long DIA Wednesday for a several day/week hold because I believe the IT bottom is in." The posts by Bobcor and Nicholas Gates (and yours to a large extent) are looking at the big picture, in much larger timeframes than I have mentioned above. Although these thoughts might be simplistic, my ideas about why people are entering non-tech trades right now are these: the shorts are looking at (1) seasonality not favoring a lengthy rally, (2) there's still a lot of bad news out there such as more corporate scandals, poor earnings reports still coming in, still more possibilities of terrorist attacks, etc., (3) any rallies we've had for the past few weeks have lasted only a few days (4) the formidable H&S on the SPX will prevent any rallies from going too far; however the longs are thinking (1) we've been severely oversold for a few weeks and due a rally, (2) Tommy Bear's count allows for a few month rally, (3) the dollar's recent surge and stability in a recent consumer sentiment reading provide equities with a favorable backdrop, (4) the $VIX on Wednesday marked an IT bottom, as readings such as that have marked IT bottoms for the past few years. stockcharts.com[h,a]daclnnay[df][pb50!b200!f][iUb14]&pref=G