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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (15114)	3/18/1998 2:03:00 PM
From: Robert Graham	Respond to of 94695

Thanks for the information. I am not surprised he calls that market in a direction opposite to what it ends up taking given some of the "indicators" that I see he uses from a quick scan of the book in the bookstore. They appear to me more fundamentally based, the type of indicator that can be out of sync with the market for a significant period of time, and other indicators which only work in thier extreme readings in conjunction with other more time sensitive indicators. From what I see, Martin Zweig uses a similar setup in that is covered in his own book "Winning on Wall Street". I can see some value in the intelligent use of this type of indicator that attempts to measure fundamental aspects of the markets. But I see thier usefulness as secondary to other methods of market analysis. The trader Larry Williams in his book "The Secret of Selecting Stocks" proposes a system also based in part on this type of indicator. Here among other indicators he tracks money supply in economic terms, professional accumulation in the market, and the yield difference between stocks and bonds, the change in short interest positions, and the change in cash position of funds. Pring uses a variant of this approach with his technically based newsletter. So there must be some value to this type of fundamentally based indicator. But some adherents to this approach seem to place to much emphasis on this in their decision making process. So they come up with calls that are poorly timed or just outright wrong. Bob Graham