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 : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (1934)	10/3/1998 10:39:00 PM
From: Moominoid	Read Replies (1) \| Respond to of 3339

do you use a fundamental view to support your TA....or is your approach strictly TA. No fundamentals comes first and foremost. TA is useful for two things - predicting short-run fluctuations around the trend - oversold/overbought and predicting the adjustment path between two fundamental long-run equilibria. LTCM were basically doing the first of these and came unstuck because they seem not to have paid enough attention to changing fundmentals. At least that's what my understanding is. So looking at chart patterns, I 'm asking whether the dynamics are there for a rapid adjustment to long-run fundamental values or not. I'd see 5000-6000 or so on the Dow as that fundamental value currently on a back of the envelope type calculation. The rest is due to what I see as biased expectations about earnings growth which may adjust. David