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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Ken Wolff who wrote (1825)	2/21/1999 9:28:00 PM
From: Ken Wolff	Read Replies (3) \| Respond to of 2120

MACRO MOMENTUM/HISTORICAL MOMENTUM The market is like a rubber ball bouncing up and down a set of stairs. A "bull" market or an inclining market is one in which the ball bounces UP the stairs and a "bear" market or declining market is one in which the bouncing ball goes down the stairs. The stock market on a daily basis is the rubber ball and it bounces up and down to some low and some high and it generally ends at the low, middle or high. This bouncing rubber ball is what I call "macro momentum" and the stairs would be looked upon as the "historical momentum". For example, if a market has been climbing historically for a year I consider the market to be inclining, the stairs are going up. So the bouncing ball will tend to be moving more in the direction of the inclining stairs each day and traders will be looking for VALUE on all the dips whether they occur daily or over a period of a week or more. During our recent NASDAQ slaughter a few months ago, I called the DOW bottom because of this inclining bull market, I knew we were not done with the upward movement and the only trick was calculating where the bounce would occur which is generally near the bleakest point in which everyone is scared. (cont..) Ken www.mtrader.com