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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: derek cao who wrote (48782)	2/25/1998 12:07:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 186894

Derek, No No No, you misunderstand. If you are a long term holder...by all means hold on. But...let's say you want to sell, or buy...and you want to maximize your exit point or entry point. TA will help you do that. It helped me buy Intel at 70. Sure beats buying at 102 if you know what I mean. Another scenario might go like this...let's say you think Intel's long term prospects are great and you want to add shares as you get the money to do so. You can dollar cost average, value cost average when you get the money or you can accumulate the money and use TA to time the entry points. Contrary to what some say, TA does have predictive value...but nothing that deals with the future is perfect. If that was the case I'd just pick up Sundays paper in advance and buy a lotto ticket. For instance... On the other hand, if you had a TA program, you could set your Bollinger bands to 90,3 and with about a 95% decree of certainty you'd know that when a security penetrates the upper band that you are going to get a pullback or consolidation within a few days. In the case of Intel, the upper band was at 95.88 and the high yesterday was 96...and voila...Intel pulled back a few points. Now, IF, you wanted to sell, and I'm not saying you should...you might use that as a timing tool. Jim

To: derek cao who wrote (48782)	2/26/1998 11:04:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 186894

derek and thread, The following is from an interview given by the famed Lazlo Birinyi, pioneer of "follow the money" approach of investment: ."The Case Against Technicians Q: You're distrustful of technical analysis, and typically investors who use money-flow analysis tend to look at major technical trends to add perspective to their decisions. It oftentimes goes hand-in-hand. A: If you track a technician over the course of a year or two, you'll find their record is not very good. Contrary to what they say, technical analysis is especially not good at calling market turns. At the end of 1994, when this market rally began, very few people were positive going into 1995. When the market started going up, everybody jumped on the bandwagon. So technicians don't have a good record of picking turns. They certainly didn't call that one. Almost everyone, including fundamentalists, missed it. Secondly, technicians don't have a very good record in picking stocks. And if you clip or save some of these news stories where some technician recommends 10 stocks, and you go back a year later or six months later, invariably you'll find that they didn't do very well. investor.msn.com Interesting. Ibexx