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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (75)	11/10/1997 6:54:00 AM
From: bearshark	Respond to of 226

Investor2: The number is based on a resistance line drawn from November 1994. It rises between 50 and 100 points on the DJI each month. The TA is that of a fellow named Edson Gould. He invested and traded from the 1920s into the 1980s when he died. Gould was incredibly accurate in the 1970s His methods were based on his version of crowd psychology. These resistance lines are based on that. It has been accurate since 1994 when I first plotted it. I find it hard to believe. However, it appears to be working. Every time since 1994 that the DJI got to the resistance line it popped right off and went to new highs. The last time it hit the resistance line at 7,000 it popped off again. However, the current dip or correction appears to be different from anything since 1994. That is why I will not begin trading this market until I get this confirmation. I still have a final long position in this market. If this turns out to be a correction in a bull market and not a true bear market, I will probably add to my long position when we make new highs. However, I will probably be doing it while I am shaking my head. In the late 1970s, Edson Gould published a report called "The Sign of the Bull." In the report he showed how the DJI would be between 3,500 and 4,000 in 1990. I wish he was still here so he could tell me what to do. However, he is not so I use the information he left behind. I will also modify some of his work too. To go with this, I will use fundamental work. I have always used a form of fundamental analysis to pick stocks and their derivatives. For trading, I will use regular puts and calls and leaps.