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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Ian deSouza who wrote (27317)	12/31/1997 1:06:00 PM
From: Don Dorsey	Respond to of 50808

The chart and its indicators are never wrong, but analysts are frequently wrong. It can be very expensive taking advice from a bad analyst, and yes there are many out there. It isn't particularly usefull when someone states they believe the market is going up or down, but if you ask why you can check the chart and perhaps see something you didn't see previously. I stated in my post that I saw bullish divergence. This means that the momentum was drying up to the downside. In other words the market was running out of sellers. Buyers haven't yet shown up, because the stock is still falling, but when buyers do come in the stock should rally, until it reaches a point where sellers again hit the market. Don't trust anyone's blind analysis, but use it to help you see things in the market you might have previously missed. The reason we bother with technical analysis is that amoung all the bad analysis out there, there is some that is very good. If done well, chart reading can significantly improve your performance, as opposed to just buying when the pe falls below 20 for example.