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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Bwe who wrote (8389)	10/7/1998 7:19:00 PM
From: Judy	Read Replies (1) \| Respond to of 34811

Bruce, my dear Thanks for your considered reply. Now let me share a few thoughts in basic terms. That methods such as P&F and classical TA ala Edwards and Magee have withstood the test of time is a testament that human psychology and people's reaction to fear and greed do not change. The market context and investing environment may change, but the basic stimuli and human nature remain constant. That the market may be forming a Bear Market bottom is consistent with the process of consolidation within a trading range, double bottoms take 6-9 months and sine wave formations take even long to complete. Having said this, no technical method can predict the onset of economic recession until it is upon us ... so one employs fundamental and technical indictors to take either protective or proactive actions for this possibility. Professionals with longevity in the markets often gauge sentiment as an indicator. If one uses SI as a microcosm of the masses, then traders making money on the short side by throwing darts and others who have grown up during the greatest bull market of this century and have never shorted trying to find stocks to short ... well, a bottom should be close. This is not to say that the market would continue to new highs rapidly ... just that the downside is within close sight. As for stocks moving down on declining volume, that is good indication generally that distribution is not occuring. Witness SLB revisiting its lows on light volume. Witness EMC making lower lows on increasing volume. I took the liberty of rambling also. So there. Take care.