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To: Robert Scott Diver who wrote (40617)	5/6/1998 3:36:00 PM
From: Fangorn	Respond to of 176387

Robert, That is a pretty chart.

To: Robert Scott Diver who wrote (40617)	5/6/1998 3:56:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

This is a perfect example of the silliness of TA. Apparently I'm supposed to be impressed with the rate of return over the year. Analysis lead me to conclude quite the opposite. According to the legend this TA method resulted in a gain of 109% in 11 trades. However, during the same period of time a buy and hold strategy would have generated a gain of 238% ($26 --> $88)!. But wait, that 109% is an illusion because quarterly taxes would have to be paid. Assuming those taxes are 28%, and further assuming that the gain was spread evenly during the year, the after tax gain is reduced to 68%! And we haven't included transaction fees or the idea that you buy at the asked and sell at the bid. In the mean time, the buiy and holder has not incurred a tax liability, and when he finally does he will pay capital gains taxes at 18%. Think about it. TTFN, CTC