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To: Christopher who wrote (43970)	1/19/1999 12:37:00 AM
From: Christopher	Read Replies (1) \| Respond to of 97611

Pruguy, Let me sum up what I said in my previous memo in a nice way. If a trader is only concerned with trading stocks, then he would only look at charts and indicators and that would be what you have called pure TA. Most people that I have personally seen here on SI that use TA, use this kind of TA. However, if you are a trader and you want to use Sector Investing or the Business Cycle Model for your trading then you need to have a lot of knowledge about the Fundamental Economic forces and how they interact with each other. This kind of knowledge is available and used by managers who use TA and who don't use TA at all. For example, during inflation Gold is a good investment and whether you use TA or not you need to know that. The point though is that all books on TA that cover Sector Investing and the Business Cycle do include that knowledge and it is considered an integral part of your TA studies. This kind of knowledge will help you know which Sectors of the economy to consider for investing. Another example would be a change in the interest rate, a change in price of Precious Metals, Commodities, and so forth. They all cause change in the Economy and shift in your investment strategy. Both TA and non TA managers need this kind of knowledge. However, TA people would also use charts and indicators to confirm the changes and to detect unusual situation from the charts. Good trading, Christopher