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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Gush who wrote (5287)	2/24/2005 5:48:18 PM
From: Vendit™	Read Replies (1) \| Respond to of 8752

The Qs or any index for that matter at safer and easier to trade long or short than in individual stock. I happen to like and write about the Qs because of the Q’s composite. The SPY and many others are just as interesting but the QS seem to track the markets over-all. Gush can you tell me why the Q’s are safer to trade that a single stock? 139.142.147.218 Reid

To: Gush who wrote (5287)	2/24/2005 11:15:27 PM
From: Walkingshadow	Respond to of 8752

Not always straightforward... stochastics is a good indicator, but not a perfect one. Furthermore, stochastics or any other momentum indicator must be interpreted within the general context defined by trends, volume patterns, internals, sentiment, support, resistance, and trendlines. One must always be wary of bullish or bearish divergence also. Case in point: the "confirmed" stochastic crossover from oversold territory that occurred on the 5th trading session of 2005: 139.142.147.218 But this crossover of itself does not reflect a number of things, perhaps the most obvious being that huge, volume-heavy black candle just overhead which confirmed and cemented the medium-term correction. Sure enough, QQQQ was demolished as it tried to encroach on that territory just after the "confirmed" crossover, and calls or other long positions entered into based on that crossover were doomed... best case scenario, you break even there (minus time value evaporation and slippage from the spread). Worst case scenario, "confirmed" stochastic crossover together with several candles suggesting upside reversal combines with wishful thinking, and you hold on hoping for a powerful move up, and all you get is a powerful free fall the next week. T