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 : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (13259)	1/30/1999 2:07:00 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 34811

Tom Dorsey responded to my earlier post regarding the BP indicators with a private message.( that was nice ) I then asked him how the S&P 500 could be at a new high and bear confirmed. With permission,his answer posted below shows (once again ) the illusionary popular indexes as compared to P&F methods. The S&P 500 chart is as is the MU 100 (largest 100 stocks held by mutual funds.) as is the Dow JOnes BP as is many other small BP's but the only main coach, is the NYSE BP as it has 2000 stocks in it. The smaller the index the more volatility it has. We have Many BP's we use but the only one that can change the risk level is the NYSE BP. Other smaller indexes like SP500 are used as ancillary indexes. Don't be fooled by the Dow Jones or the NASDAQ rising as meaning the whole market is going up. 500 more stocks declined last year than rose on the NYSE, and more than half the NASDAQ declined while the NASDAQ rose 40%. The Advance decline giving a sell is very important. How can this index go down and give a sell signal while the market is happily going up. The reason is more stocks going down than up. Many Mr. JOnes's looking at their portfolios each month and seeing losing numbers than winning unless they are in a handful of tech stocks. The average stock lost 48% last year according to DLJ. This translates into the average brokerage account losing on the year. Tom