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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Libbyt who wrote (22525)	12/2/2004 8:24:33 PM
From: chowder	Read Replies (1) \| Respond to of 23153

Libbyt, Where most people make mistakes using technical analysis is that they think they are trading stocks. They're not! They're trading people! Technical analysis measures the psychology of the market. That means it measures human emotion. Stocks don't have emotions. Earnings don't move stocks. PE ratios don't move stocks, neat little gadgets and products don't move stocks. What moves stocks is buying or selling based on human emotion. JOSB pulled back at the 50 day moving average because that's where experienced traders take profits. Every sale has a buyer and every buyer has a seller. Fear sells to greed and greed buys from fear. Technical analysis helps in determining whether greed or fear will rule the day and you measure that ratio daily. dabum