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Non-Tech : The Children's Beverage Group (TCBG) -- Ignore unavailable to you. Want to Upgrade?

To: Cavalry who wrote (817)	7/12/1998 9:42:00 AM
From: Stephen Goldfarb	Respond to of 2452

Cav: There is a pretty good series of technical indicators at askresearch.com Technical analysis is not without its ambiguities. Though some technical patterns suggest the prospect of a further move in a given direction, they still use the past to project the future. The success of that depends on the underlying instrument...i.e., the stock. Volatile stocks remove a lot of predictability. Technical indicators are mostly lagging indicators, rather than predictive. They tell you what happened after it happened. Also, technical indicators tend to "mathmatize" one's investment decisions. That is, they may give a sense of objective credibility to something that is not necessarily objective. That can be a trap. I also think, even having said this, that the chart pattern (bowl shaped bottom), breakout, higher highs and lows, is suggestive of a further, perhaps substantial, move upward. But I don't know. I notice that one indicator, Money Flow, made a double top while the stock price broke out to a new recent high. That is an indication of divergence (between the indicator and the stock price). Some technicians might read this to question the validity of the price move. Steve