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Strategies & Market Trends : Humble1 and Swing Trading Friends -- Ignore unavailable to you. Want to Upgrade?

To: Jeffry K. Smith who wrote (3981)	9/28/2010 7:49:05 AM
From: Fintas	Read Replies (1) \| Respond to of 41469

If you have been jotting the numbers down re the bell curve sector you would be seeing the range. As of late it has been moving up after dipping into the mid 30's. Yet with that dip and recent rise has been some back testing. That back testing has passed and the sector has now moved from the 44 to the 50. Clearly TRENDING UP. Doesn't mean that it will not back test again. In fact I EXPECT IT. Yet if you had access to that bell curve AND the SEVEN other indicators that are available, the first thing one would notice is the PATTERN that has been formed as the OVERALL sectors moved UP yet one could see many sectors SELLING. HMMMM SECTORS SELLING yet the OVERALL Sector avg MOVING UP from that recent 44 to 50. HOW can that be? WELL there is SELLING i.e distribution and as that is happening there is BUYING and enough buying in OTHER sectors to cause the number to RISE from the 44 to 50. Now from an spx perspective, that is NOT seen for one does not have the ability to see within that spx to see what groups are selling and what groups are buying i.e being accumulated. Now those who play the spx do NOT care. They simply want to know is the spx going to 1103 or 1170 Those who buy equities DO care for the nuance gives them a closer view re the sector and equity is in. SOOOOOO you can have a rising SPX and still lose money in your equity if the SECTOR is out of favor and vice versa. So hope it helps but I won't spend much time doing the explanation thing. The reason is simple. It's work and takes time to explain. The bottom line is: BUY THE DIPS in the GOOD equities and the rising sectors IF you are an equity buyer. And if you are an spx player pay attention to the direction of that bell curve sector for it's tough for the world is coming to an end if it is rising yet has room to rise more albeit with profit taking along the way and why another on another board says SNORT! I agree.