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To: DSPetry who wrote (618)	7/16/1998 1:06:00 AM
From: Jonathan Lebed	Respond to of 728

Hopefully Freddie will give us his expert analysis, because I will most likely learn a lot too. Jon

To: DSPetry who wrote (618)	7/16/1998 1:10:00 AM
From: Ga Bard	Read Replies (1) \| Respond to of 728

Now there you go DS but I hope I did not call anyone a name. I hope I was posting facts from the filings. GB

To: DSPetry who wrote (618)	7/16/1998 9:11:00 AM
From: Freddie Forte	Respond to of 728

Dave. Good morning. Apparently Jon couldn't take a stab at it. The question was,"When the price declines and the Acc./Dist. indicator increases, explain this divergence and what is taking place?" Okay. Here goes. A market could be collapsing into new lows and appearing hopelessly bearish but underneath the surface professionals could be accumulating positions, indicated by an accumulation-distribution line that is refusing to follow price down. The point is, when the price diverges from A/D, A/D is pointing the way the price will go. If given a choice between going with the public and going with professionals, odds are good you would prefer to be on the side of professionals. The public isn't always wrong. However, given this choice the answer is obvious. On-Balance Volume and Money Flow indicators only confirmed what the A/D indicator is trying to tell us. If the price is declining(which it is), and On-Balance Volume is declining(which it is), the interpretation is bearish. Technical charts do not lie. They are the blueprints of a stock's trading activity and their merits are undenied. Anyone who dismisses T/A as hogwash is not facing the reality of the situation. Of course, T/A is only one aspect of valuing a stock. But, I'll take T/A over hype any day.