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To: Ian deSouza who wrote (27315)12/31/1997 12:25:00 PM
From: Don Dorsey  Read Replies (1) | Respond to of 50808
 
The chart is the most accurate measure of psychology available. It demonstrates how the billions of people around the world perceive the current state of news, the economy, etc, and more importantly it shows how they are acting with their money. It is probably impossible for an individual to assimilate millions of bits of continuously changing information about the company, the markets, the economy, but an individual can look at the chart and, if the analyst is any good, reach conclusions about where buyers tend to outnumber sellers, and vice versa.

I used to be a skeptic also, mostly because most analysts make predictions beyond their ability. There are however certain patterns which are reliable much more than 50% of the time.