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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (13361)	11/17/2002 7:55:24 PM
From: ajtj99	Read Replies (1) \| Respond to of 57110

The reason why I discount the exogenuous events is because the price rebounds at support. That support was there before the event or news. Unless you can come up with an algorithm that applies scale to news events and their effects and you can get the rest of the world to buy into your new algorithm, you are going to be the only one trading according to your slop. It's pretty dangerous when you're trading with something that has support and resistance lines unique to you. Unless I'm mistaken, we were already at COMP 1695 or so prior to Sept. 11. After the market opened back up, we took 5-days to drop to the eventual low. How can you say the low was as a result of Sept. 11? If it was, we'd have hit it on Sept. 17, not 5-days later. That market was in a parabolic drop prior to Sept. 11. How come that drop in Sept. 2001 gets special notice but not the drop from 2898 to 1619 earlier in the year? Didn't Japan's mark to market have an effect on the drop in March 2001? Why not incorporate that slop into the charts. See, it's not so easy. It's a nice concept, but doomed if you're the only one following it. You're looking at the Sept. lows like it was an item that was mis-marked at the store and someone rang it up. However, the store's systems put that price on it and it was the correct price at that time.