Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Lee Lichterman III who wrote (13999)	8/5/1998 5:16:00 PM
From: Electric	Read Replies (1) \| Respond to of 42787

What was key for me was to see what happened the 5 minutes after DELL went below 100... Look at the chart.. a zillion buyers were there.. That was a mega sell program, and to me when a sell hits, forget about resistance points.. it is a wave of power than knows no boundaries.. So to see intra-day drops is differnt than to see the overall net effect.. There was more power up than down...

To: Lee Lichterman III who wrote (13999)	8/5/1998 6:40:00 PM
From: Robert Graham	Respond to of 42787

I agree that many are surprisingly complacent about this market correction that may still have more to go. This is where my frustration lies in my attempts to help. People are going in to pick up stocks only because it "attracts" them at a lower price is a bit much. We have seen key stocks break down one-by-one during this market sell off, and to respect the support as a new resistance when the stock attempts to move back up. Everyone was so eager to jump back in (where does this need come from?) and that is what we witnessed right at the end of the day when stocks like DELL started to violate key support. The questions is: where was the buying earlier when the stock broke through initial supports? This questions and its lack of answer is not bothering most traders. At it is not just DELL. It is IBM, AMZN, AOL, MSFT, INTC, and on and on and on. Most all of the leaders in this market. Even YHOO was starting to sell off. This may be why the market is performing the broad rounding top. Nobody is willing to believe the party may be coming to an end at least for a period of time. As the market shows signs for months now of coming to a conclusion of a cycle, they take the lower prices as a buying opportunity even during an obvious sell off. I see nothing in the charts and evident in the sentiment of the market to indicate such an agressive stance. I am finding out the most spetacular forms of speculation does not come near the end of a market cycle where there are impressive up days. It comes after the cycle is over with on down days. Out of all the place I would expect to see unbridled speculation, this was one of the last places I expected to find this form of speculation. Allot of very good, freindly, intelligent people here throwing caution to the wind. This market has been unusually "safe" to such an approach. But this will be to the eventual demise of many of this type of trader who chooses to dance on the ice only because it is there. The market has done no favors by helping traders feel secure like this where they are willing to step up into a long trade even before a sell off has found a bottom. This is breaking some of the most fundamental rules of trading: do not attempt to pick a bottom, and do not trade against the trend. During market sell offs this is good advice for traders who go long. These traders are waiting for that big surge generated by the hedged position that the hedge funds played off of last time that market sold off. Well, if this was going to happen this time around, why didn't it already happen like TODAY?? Many still do not understand that the market has changed for the time being, and there may be no hedge funds there to save their ass this time around. Much of what I see are thrill seekers, not traders in it for the money. This is what the S&P Futures floor trader Goerge Angell has said in one of his books: that many traders are not there for the money. They are there for the thrill and excitement it provides them. This has surprised him and it is surprising me. What is so incredible about this approach that I am witnessing is that lets suppose that anticipated rocket launch of the market will happen. Will the handful of points that they are taking substantial risks for make that much of a difference in the bigger picture in terms of the profits still to be made? Of course not! But then it would not be as thrilling and exciting to jump in when the market is already going up, would it? New form of trading: bungee jumping. Even some of the descriptions of traders' experience jumping into this market a very similar to the comments I would expect to find at a bungee jump on the fear they felt and the excitement afterwards when the stock bounced. I am seeing ample evidence of this bungee jumping here. Even people who do not day trade are now day trading even though it is a completely different game than short term position trading. Everyone here take care and be careful. Just think. If I was not providing the negative perspective here, life on this thread would not be complete, would it? ;) So I have done my part. Bob Graham