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

To: Tom M who wrote (26216)	9/2/1998 11:58:00 AM
From: James F. Hopkins	Respond to of 94695

Hi Tom; I'v found that often inter-day you can't depend on that as an indicator unless it's a major move, in which case you won't need it. <G> I do watch the A/D ratio , and up and down volume inter-day. Much of yesterdays rally was the very short term shorts taking profits. Specialist and market makers take up short positions when the see sell orders exceeding buy orders and are the first shorts in on a gap down, also the first ones to cover, the gap will most often fill, by that I don't mean it will go back up to that level, but when the bottom is reached it will bounce back the gap amount, that part of the bounce is just profit taking by the S/MMs often they are just buying back what they shorted , and buying from new shorts coming in, ( this swapping places of borrowed shares ) causes a lot of volume in excess of the "real" shares actually being traded. The best we can do is guess at it. If the market were on the up & up, they would show this activity as a percentage of trading as it ran, there is no valid reason they can't, except it would wipe out a big illusion they try to maintain and give the little guy to much of a fair shot. --------------- Back to the new lows inter-day, many small caps don't even trade until late in the day. Jim