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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (1664)	9/15/1998 12:54:00 AM
From: Mark Z	Read Replies (1) \| Respond to of 7247

<<You'd think with the $TICK in such a downslope, the market would be tanking.>> Well, the DOW did drop about 90 points from its high to the close. That may not be tanking by this month's standards but still enough to make some $$$ going short <g>. (digression: for those who don't follow Iqbal Latif, this morning he said if the SPX tested 1035 twice and failed, the market would head south; this is exactly what happened today. Going short or purchasing puts when 1035 resisted the 2nd time was a good play. See Message 5740511 for his original forecast). <<The ADV/DEC ratio was fairly high too. Wouldn't such a downslope to $TICK imply that Decliners were outpacing the Advancers?>> Not necessarily. There was a nice gap up this a.m. (about 150 points) and then the DOW tacked on about another 100 points so the downticking at the end of the day was just filling what the DOW tacked on after the opening gap up. Mathematically, look at the area in positive territory on a graph of the TICK and compare it to the area in negative territory. Much more room 'above' the line than 'below'. If you give me $100 today and I give you a penny a day for the next 5,000 days, my 'gain' from that original gift is steadily declining but I'm still ahead in the end.