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

To: Gush who wrote (5371)	2/26/2005 12:17:50 AM
From: Walkingshadow	Respond to of 8752

<< I'm thinking about how the resistance at 38.01 should have been broken today based on the news. >> Remember.... news only moves markets IF and ONLY IF it sparks professional buying (or selling). Generally, professional buying (or selling) of the magnitude that drives long-term trends has far less to do with the news-du-jour, far more to do with sophisticated ongoing risk/benefit analyses and quantitative modeling, identification and characterization of potential opportunities, and downside risk management. So particularly in regards to an index like QQQQ or SPX, I would suggest taking "news" with a big grain of salt unless and until you see solid evidence of big players stepping up to the plate, and ALSO evidence of sustained accumulation, since the kind of big players that determine trends cannot fully take positions on any one day or even week or month. I note that today QQQQ reached about as high as I thought it would (I said around $37.65). I anticipated selling would begin late in the session, but that did not happen. So, I think it will happen on Monday. Volume today was anemic. Furthermore, the volume was neither the quantity nor the type that would drive further upside, in fact quite the contrary. .... all IMHO, of course. T

To: Gush who wrote (5371)	2/26/2005 7:44:57 AM
From: Vendit™	Respond to of 8752

Gush, Re: I haven't seen the linear lines work in my T/A to date. So I'm looking forward to seeing the value in them. Below is the text book definition of Linear Regression Channels: Linear Regression is a tool used to measure trends and consists of a straight line drawn through the prices using the least squares method to plot the line. Two parallel lines are drawn equidistant above and below the linear regression line and these lines act as support and resistance. The space between the parallel lines is where equilibrium exists and if stock price moves to one of the channels prices will usually move back to center or the opposite channel line while a significant penetration of either line on volume, would indicate a breakout is occurring. Your statement to me that they have not worked for you indicate that you expect them to pick exact tops and bottoms for you. Don’t expect any technical tool to accomplish that for you. Linear Regression Channels calculate both the trend and the area of trading normality for a given time-frame. Linear Regression Channels put you into the Calls that you just sold for a profit on Friday. Reid