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To: Dan B. who wrote (30756)	1/5/1999 12:33:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 33344

If predicting the future was that easy why not just buy lotto tickets? TA can be used in a multitude of ways...for instance, as a timing tool used with Fundamental analysis. Often the chart will tell you something is happening long before the fundamentals become clear. If you wait for the fundamentals you've sometimes missed half the move. Insiders know the fundamentals before you do. The chart tells the story... Jim

To: Dan B. who wrote (30756)	1/5/1999 4:25:00 PM
From: DanZ	Read Replies (2) \| Respond to of 33344

Dan, I'd really rather not get into a debate of TA versus FA. I use both in my trading with an emphasis on TA. I would like to make two more comments though with regard to your statement: <In your example fundamentals moved the stock. TA chart looks good only later> First, I believe that investors' perceptions about future fundamentals move stock prices, not the actual fundamentals. If your assertion was true, then stock prices would not trade up and down like they do. In other words, if everybody agreed on the future fundamentals, then stock prices would jump to a particular price and not budge until the next fundamental change was known. In the end, fundamentals have to justify stock prices; but, stocks move up and down every day based on perceptions, not reality. Second, I have to disagree with your statement that TA chart looks good later. It's the other way around. Stock prices move well ahead of fundamentals. How else can you explain the rally in the semiconductor sector over the past couple of months? Earnings at these companies have not improved yet. The stocks are moving because investors are predicting that earnings will improve in the future. Last, I'd like to say that I use TA to reduce risk. It does not guarantee a profitable trade. Thanks for keeping this a peaceful discussion. These types of discussions sometimes make people very upset and I'm not looking for a fight. :o) Dan