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 : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Terry Whitman who wrote (7181)	2/28/1999 12:29:00 AM
From: Casaubon	Read Replies (3) \| Respond to of 99985

I agree, and that is my point. The downward price action we have seen so far this month in the markets is a "nontrending" event, since there is no volume confirmation. Therefore, I could not conclude that the sky is going to fall, from this data. Could someone offer more compelling data predictive of a large retracement of recent uptrends. Please, if you have opinions regarding market directionality, provide the data and the reasoning behind your opinion. Thank you!

To: Terry Whitman who wrote (7181)	2/28/1999 9:25:00 AM
From: HairBall	Respond to of 99985

Terry Whitman: I agree with much of what you say about volume. I picked the bottom in IBM in 93 via several large volume spikes before the lows and soon after. Of course, this rounding bottom process took about 18 months. The big boys were patient... For a second example of volume proceeding price, back in the eighties I noted actually on Prodigy, that for several trading days, TFONY was having extreme volume in the low pennies with "no" price move. It was not at that time listed on the big board as well. It proved to be a good call. I find those are examples of big boy accumulation and less often one can note distribution at or near tops. However, there are many times when price is used to generate volume. S/MM move a stock's price quickly at determined price points, (support/resistance areas) to trigger buying or selling. I see this often intraday. JMHO BWDIK Regards, LG