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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?


To: j g cordes who wrote (16374)6/4/1998 9:38:00 PM
From: Lachesis Atropos  Read Replies (1) | Respond to of 68426
 
The moguls are on hold. They have already claimed three of my ribs! Now MCI has me mediating negotiations between big iron and client/server programmers for a diplomatic design to increase communications between systems--a black hole that sucks up the time space continuum.

I was thinking in of how media re-enforces terms like "flight to quality". To me this and to many quality is associated with price. Big caps win at the detriment of small caps.
Lower price stocks have higher volatility than more pricey stocks. MSFT is a very low volatility stock. The frequency of MSFT jumping 20% is rare compared to SYSF, in respect to short term trading opportunities. This is what my argument is for price classes.

I also noticed some consistent patterns. Prices rise fast then correct slow, something like 4 days up then 7 days down. However, on strong stocks, the price down does not go below the original price up on average. The pattern still holds on the weak (prices rise fast then correct slow); but the price falls below the original--SYSF is an academic example in this case. This observation re-enforces the thesis of this thread. Chances of catching a short are good, if one is a short-term trader (2-5 day trades) due to duration, however long trades are more profitable on the less volatile stocks (the buy-hold rule) on long term trades (months to years).

To me the market still seems to be quite healthy from a (2-9 day turnover) short-term momentum perspective. The overall market average is still holding at ~11% per 30 trading days. Trouble is finding the profitable investment.

Still holding short on IFLY, though it is appears to be flattening out.

I have come up with few more ideas to test and features to add to my trading system, overall I am happy with the results. At the rate I am going should be finished in a year. I need a good mathematical stock picker. Now if MCI would donate some time.

Lachesis