To: donald sew who wrote (41771 ) 4/29/1998 12:07:00 PM From: Robert Graham Read Replies (1) | Respond to
I do not know the indicators you are using or specifically how you are using them, but I will throw out some thoughts here, some of which may apply and others that may not apply to this situation. First off, Isn't this what happens during a market adjustment where OS readings are not heeded by the market? The market can bounce and move up to then reverse. So rallies end up being short lived. This is different than a natural and regular retrace by the market before continuing up where the short term trend remains intact. The market has been responding by attempting to go up which it did late Monday and continued Tuesday morning, but then it was knocked back down before the close. First off, your technicals are working off of end of day figures, not intraday. Also, what you are seeing EOD can mean either the funds are not participating in the runup, or worse yet, some are selling into this runup like what I saw with HWP. But understanding where the fund money is going can help provide you with one important piece of the picture. Fund money can both buy, stay neutral, and sell. Still, when they buy and sell, the market responds. If they are selling during a market adjustment, I would expect them to sell on the rebounds.
