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Strategies & Market Trends : Win Lose or Draw : Be A Steve, Make A Call -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (6028)	3/11/2003 2:18:18 PM
From: lurqer	Read Replies (1) \| Respond to of 11447

Link? Consider: In pressing this extremely bearish argument, Hochberg mentioned the work of Paul Desmond, president of Lowry's Reports, who won the 2002 Charles Dow Award for his research on the significance of 90% downside volume and price action. Yesterday qualified as one of those so-called 90% downside days, Desmond reported in an email note to Lowry's clients. In an interview today, he stressed that "important market declines typically end with a series of 90% downside days, followed by a 90% upside day." (Today, upside volume was 75% of the 1.34 billion shares traded on the Big Board and 78.5% of the 1.3 billion shares exchanged over the counter.) The key is that a series of 90% downside days are typical at major market bottoms. As reported here on Aug. 6, the average over the past 70 years is five 90% downside days, while 14 occurred before the market finally bottomed in 1974. The last one before Tuesday was on April 3, 2001, Lowry said last month. "Once they start occurring, get to the sidelines and protect yourself until you see a series of 90% downside days followed by a 90% upside day," Desmond said. "We're probably some ways off from a real bottom [and are] going to have to go through this process again of having multiple 90% downside days [until] prices get down to a point where perhaps investors get really enthusiastic." Desmond compared the first 90% downside day to a sale that doesn't attract quite enough customers. So the store keeps holding sales at ever-deeper discounts, until "they get prices down to where buyers come marching in," he said. "It rarely [occurs] after just one 90% downside day." From aol.thestreet.com This was obtained by typing >>Paul Desmond Lowry 90%<< into Google. This search yielded other references as well. Are you familiar with the concept of DD? lurqer