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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (8941)	5/27/1998 11:03:00 AM
From: Robert Graham	Respond to of 42787

I am sure the market will generate "news" of its own making or interpretation in its attempt to understand what it has seen. Never doubt the newscaster's ability on your local evening news channel to come up with such a reason. I bet one reason used will be the drop in the Asian markets. This may be partially true, but news events including this one tend to help precipitate the technical action of the stock market rather than cause it. If the technicals were showing the liklihood of the market to continue its move down, news just helps the market follow through. This is a sentiment type of thing. The DJIA just had a very small bounce and is now poking past its intraday low. We are at a market decision point right now. If you listen carefully, you may just be able to hear the bulls go "yeah! Its going to bounce. I know it going to bounce an move up from here", and the bears going "see, it is alread past its intraday low so its going to lose at least another 50 points and maybe even another 100. I just know it will!". And they are making their trades accordingly. You know what I say? Time will tell if the DJIA will break through its intraday low. If I were playing this right now, I would wait for the bottom to be confirmed or invalidated. But then I am no day trader. If I was AI would be looking at other indicators like the TICK and TRIN and the futures and the long bond. But I am just demonstrating a way of thinking here using this as an example. Bob Graham Bob Graham