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 : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: TA2K who wrote (9641)	2/28/1999 3:57:00 PM
From: keith massey	Respond to of 12039

The current level of the DOW is being support by only a handful of very powerful stocks. The A/D line is telling us that across the board a greater percentage of stocks are going down rather than up which gives some insight into the minds of the investing public. If you look at the current A/D volume line you will see that more volume is going into the smaller percentage of stocks that are going up compared to the larger percentage of stocks that are going down. The problem with the DOW is that the number has a big effect on investor psychology. If the DOW plunges 300-500 point it could be the result of only a handful of the most powerful taking a dive. However the DOW is a positive feedback system. People see this drop...panic...and normally sell off across the board. This can often feedback on itself and then comes the downward momentum. My current trading has not changed much other than being a little more careful. I will also try to be a little more on the short side during the next few months just in case. Best Regards KEITH