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

To: Lee Lichterman III who wrote (9906)	4/5/1999 10:41:00 PM
From: bobby beara	Read Replies (3) \| Respond to of 99985

Lee, >>>SCH was up due to a 30% increase in online trading last quarter<<<< Overtrading is a symptom of what? -g- Do the customers have the chopper on their front lawn or do the brokers -g- In the previous post I errantly mentioned the bearish rising on the SPX, it is actually on the recent market leading Dow. on a closing line basis 9997, 1006.8, 10007.3. The final leg up began on 2/18, 55 fibonnaci days later is tomorrow,which is also 34 days from the 3/3 turning point and 89 days from the 1/8 turning point. Liquidity being sucked out! Japan on the mend, 1st quarter Small Cap Fidelity Japan fund up 40%, compare that to our RUT, now thats a bottom BULL TRAP. Get thermo!

To: Lee Lichterman III who wrote (9906)	4/5/1999 10:47:00 PM
From: KM	Respond to of 99985

They get $29.95 to be exact which is an outrage considering their crappy website and service. That said, my Schwab puts are in intensive care <G>

To: Lee Lichterman III who wrote (9906)	4/5/1999 11:17:00 PM
From: StockOperator	Read Replies (2) \| Respond to of 99985

L3, I don't know if your question was addressed to me. But I would ask you whether or not that 30% increase in online trading was a direct result of established accounts moving their trading to the net. I don't know. I just finished looking at my charts and wanted to close my night on SI with a few comments on how things finished off. The one thing that struck me was the position of prices for some of the major stocks and indexes that I follow. Today's close had prices either breaking into record highs or right at that level. I really believe that we are at some sort of juncture point. A point where prices are going to break the consolidation of the past couple of months while a new trend develops. Or possibly we are going to get a bull trap where the deteriorating market internals finally catch-up with this bull and this rally fails in its attempt to break. Here are a few stocks that didn't perform so well today. There are definitely worth keeping an eye on. AT&T, Merck, and Chase Man. A new leg of the bull market will not be sustainable without these three. I will be away tomorrow. I hope you all have a profitable day trading. SO

To: Lee Lichterman III who wrote (9906)	4/6/1999 1:30:00 PM
From: Will M	Read Replies (1) \| Respond to of 99985

L3, The Schwab pricing and revenue phenomenon you describe can be explained by microeconomic theory--price elasticity of demand, to be more precise. According to the theory, if demand is price elastic and a firm cuts prices, ceteris paribus, total revenues will increase as the quantity demanded expands proportionately more than the price reduction. As a Schwab customer for some time, my best recall of their pricing structure is that, prior to the introduction of e-Schwab, their lowest price brokerage service was TeleSchwab for $49.95. The lowest e-Schwab price currently is $29.95, as far as I know. Assuming the numbers are generally correct, Schwab has lowered its lowest tier prices by about 40%. If quantity demanded increases by more than 40%, Schwab revenues would rise. We can expect that the demand for net-based brokerage services is price elastic, at least up to some point, because of all the competitors in the market. Schwab does not have monopoly control over the brokerage market. Also adding to the profit effect would be the presumed reduction in per unit costs as more investors switch to on-line trading. All of these factors could spell bigger profits in the short run, but we also have to expect that, as long as costs of entry are low, new competitors will continue to enter the market if there are profits to be made. Hope this helps.