To: Meathead who wrote (27136 ) 1/8/1998 6:09:00 PM From: Francois H. Gaston Read Replies (4) | Respond to
TA... Let's talk about TA. This is how I reason (for the sake of teaching and be criticized) and make my moves . All of us could see, since October crash that the Asian market is very heavy on Europe and the US. Therefore I use that to enter a position in the stockmarket. I enter a short position when I think that the trend of the stockmarket is down, and like to short overpriced, popular stocks... Because they could fall from higher. I actually bet against the ongoing trend for the stock but with the trend of the market. In the morning (morning IS the key in my moves) I analyze the indexes in(A) Asia, then(B) Europe, then(C) basic TA on the DOW, SP500, Russell 2000 and(D) TA on the equity of my choice.and if US indexes are looking as if they are going to go down (I use candlestick interpretation a lot for that)... I will scan stocks to short (high PE stocks which "keep climbing". On the contrary, if A, B, and C have been down for a while (typicaly these mini trends in the stock markets last 2-6 days) BUT show a potential reversal, I cover my shorts and BUY some stocks.distribution from the TA perspective. The DOW,however, bought itself a nasty candle.... and the opening in AM can only be down... unless Asia pulls out a rabbit on us. Tommorrow I see a very bad day for Dell, at least in the beginning (again especially if Asia AND Europe are down). I am however very impressed by Dell resilience today but I noticed that some small caps did extremely well. There is so much cash around this January that, IMHO, Dell is supported by only that at the moment (MF managers eager to use OUR money)... BUT some of that cash will ultimately poor in very specific equities that have already been beaten down, especially some small caps (just IMHO) and the January effect might end up being extremely specific to certain equities. THAT is nasty!: a double whammer on the company!. But let's face it: if we take a profit of any kind in the stockmarket, we simply are a better thieve that day... We are bunch of thieves because when we are successful, we steal money from poor souls. That is how I see it.
