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


To: bobby beara who wrote (8862)3/23/1999 7:51:00 PM
From: dclapp  Respond to of 99985
 
I agree with bb's excellent list. I don't, however, buy "extreme bullish sentiment" presages a drop (and vice-versa). In 1987 (and 1929 and, and...) there were a ton of "bears".

Prior to market trend changes, the "contrary camp" must -- it only stands to reason -- be in the minority, but there can still be a hellava lot of them :)

doug



To: bobby beara who wrote (8862)3/23/1999 7:58:00 PM
From: Terry Whitman  Respond to of 99985
 
Here's some more bull dung to throw on your pile. <g>
Message 8274420
and ten more
Message 8277497

A few repeats from your list- but we can come up with some more if anyone wants. <g>



To: bobby beara who wrote (8862)3/23/1999 7:59:00 PM
From: dclapp  Read Replies (2) | Respond to of 99985
 
let me add one more thing to bb's list:

here's the idea: <<if>> huge divergences between the indexes and the AD line lead to broad sell-offs, <<<why is that>>>???

my answer? the declining AD line means that real people are losing real money in the market. At some point, they say "piss on it" and leave -- if not "all at once" (panic selling) at least in a short amount of time (worried nervous "weak hand" selling).

and that, I think is what a "sharp correction" (we don't have bear markets anymore, of course, only "corrections" -- see? I watch TV!).. or a BK really is.

doug (master of stating the obvious...)