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

To: robert b furman who wrote (20995)	6/26/1998 2:28:00 PM
From: William H Huebl	Respond to of 94695

Bob, THE MACD is the difference between the 26 day moving average and the 12 day moving average. A 9 day exponential moving average of the MACD is the signal line. There are numerous ways of interpreting the (daily) MACD. To name a few: - When MACD goes above 0 ( the 26 DMA > 12 DMA) then buy. - When the trigger goes above MACD, buy. - When the MACD bottoms and starts up, buy. And of course there are divergences etc,etc,etc. If you look over the period since 1993, you will find the MOST reliable use of MACD on VGY was to be OUT of the market when it was below 0 and in (long) when it was above 0. IMHO. A weekly plot of MACD then makes it something it is not... although there are some formulae that can convert it to a weekly plot. Feel free to ask further. My current take on the markets are as I said last night... until we CLOSE above 9,000... a tremendous barrier, we will only see reflex rallies in an essentially down market. BWDIK? (I AM trying to buy BA calls... because I believe the stock is oversold.)

To: robert b furman who wrote (20995)	6/26/1998 10:34:00 PM
From: William H Huebl	Read Replies (1) \| Respond to of 94695

Bob, I went back and rechecked a number of things... several of the MACD formulae I have in my tool kit provide the behavior you describe here... but the one that is an indicator doesn't... as Spock would say... peculiar! I will have to contact Equis to find out what goes on... maybe I missed something here. And you are right... it DOES look more like a weekly chart. But how could it do that on a daily chart unless the parameters were set differently than the MACD we all know and love??? Bill