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: StockOperator who wrote (7462)	3/3/1999 11:17:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

SO: If one were using monthly charts for alerts, the July 98 drop would have been close to over before one would have noticed. Now if the Market begins a slow grinding multi year bear, then the monthly chart may well work. The weekly chart will give one a quicker signal than the monthly, but it will still slow the alerts. In my opinion there is nothing one can see on the monthly or weekly charts that cannot be seen or charted on the daily. And, the daily allows for quicker alerts. If one wants to smooth the singles, one can increase the time frames. I have been charting for many years and have totally migrated to daily or intraday charts. I rarely find weekly charts useful, much less monthly charts. The only real use I find for weekly or monthly charts is to clean up the plot of multi year charts, graduating to the weekly and monthly plots as needed. IMO BWDIK Regards, LG

To: StockOperator who wrote (7462)	3/4/1999 1:17:00 AM
From: donald sew	Read Replies (3) \| Respond to of 99985

StockOperator, In the longer term, whether its April or 9 months out, I am still quite bearish, but the points that you make are valid. For this discussion lets forget about technicals, but just strategy. I play chess quite a bit, and depending on my opponent's strength I sometimes use my sucker routine, which is when I play WHITE but take a very passive mode in the beginning and maybe gambit a pawn to give an impression of weakness on my part, only to pour it on in the later game. Keep in mind these are very bright people who are pulling the trigger for the big boys and they should never be underestimated. Heres my chess game analogy. Have you noticed how the market right now is gravitating towards 9300. Yesterday we were at 9400 and we sold off intraday back to 9300, then today we get near 9200 and we move back up to 9300 on light volume. So when we got to 9400 they were able to off-load stock. Now when it got to 9200 they would start nibbling to pull the small investor in to bring it back up. They probably dont want the DOW to get too low and keep it from getting too close to 9100 where more may get scared and sell off the market big. As long as they can keep the DOW around 9300 for now, they feel that the average trader/investor will not strongly sell. They themselves do not know exactly where the market is heading immediately, just like a chess game not knowing exactly the opponents next move. So as long as they keep nibbling and keeping the small guy in they will continue this routine. Now, ever so often they bait the small guy by some small buy programs, and they watch to see if other big boys and smaller investors buy. If they buy then the market goes up. Then then start selling a little, but lets say when they start selling the market is not going down, so they change their direction and start buying which may push the market up higher and higher. Well, enough of that chess game analogy. It came to my mind since I just got finished using that strategy in a game tonight. ggggggggg Makes one think. I will not underestimate the possibility that the market will head higher, although it doesnt appear that way for now. Seeya