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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (1251)	11/24/1998 4:22:00 PM
From: Carolyn S.	Read Replies (1) \| Respond to of 4916

Dennis - "Angler, my only concern with TA is that we don't know what companies and what mix of companies are being held at any particular time so how can TA be that accurate with MOST of the selects??" My 2 cents... TA, by definition, is not concerned at all with what's inside. TA is only concerned with what's outside - ie. what the price and or price&volume show. So it doesn't matter what mix is being held if you are doing TA on fund prices (adjusted for distributions). Carolyn S.

To: Dennis who wrote (1251)	11/24/1998 10:57:00 PM
From: Angler	Read Replies (1) \| Respond to of 4916

Dennis: You make a good point. The exact mix within any select fund can never be ascertained only the leading 10 components, perhaps, one to 3 months back. Fidelity no longer allows one to talk directly with the fund manager. So the indexes must come into play. I am unqualified to disect or explain TA; I can see where it can provide valuable information on any one stock. That appears to be entirely reasonable to me. But the market is not logical at times and when bad news comes from nowhere, Humpty Dumpy can fall off the wall, and all the Kings men can't put Humpty back....? But the Sector funds are meant to be traded aren't they? I think you have to be quick witted at times and the tape is what makes most of our decisions eventually. Happy Turkey Day! Angler

To: Dennis who wrote (1251)	11/24/1998 11:54:00 PM
From: JR	Respond to of 4916

Hey Dennis, Hope you don't mind my 2 cent's! With pure TA you shouldn't be concerned with what the fund is holding it has no relevance to your indicator of choice. The thing with pure TA is to keep you head, don't fall in love with a fund, don't second guess yourself and modify your system as the market changes. Now there is a form of TA that uses fundamentas to pick sectors and TA to move in and out of individual shares. It basicly works like this, you take a long term fundamental view on a industry sector, such a health care, commit a set sum of money and buy and sell the individual parts of that sector based on pure TA therefore selling at short term tops and buying more shares at the bottoms. I know a person who uses this method and he is making out good(so he says). Personaly I use TA to pick strong sectors and then TA to pick individual stocks within that sector, It has worked great for many years however this year it did get me out at the top, but the market has had one big move while I'm losing cash(Thats why I can't give you my 3 cents worth) Hey dude, no matter what your system is, every trader I know and all those here on this thread will tell you one thing, keep your head and don't self destruct. Have a GREAT weekend JR P.S. Spelling suck and I'm out of time :(