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: Robert Graham who wrote (10008)	4/6/1999 4:18:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

Robert Graham: The next phase is the sentiment driven market. This is when your technicals say PULLBACK NOW and the market continues to go WHOOSH on upward. So much for most short term technicals. In this case, the technicals are more used for more purely artificial guidelines or measures to delimit times for personal buying and selling that any timely indication of market movement in terms of the buying and selling by the public. And these guidelines need to continue to be adjusted inline with market enthusiasm and type of stock that is being traded. No offense, but I think you are confusing technical trading/investing with fundamental investing. Of course, there are some hybrid systems that combine what I consider technical analysis with fundamental analysis to make trading or investing decisions. I use both for medium to longer-term evaluations, but I actually always trade based on a technical system...always. For intraday or very short-term completely emotion driven plays like most of the "internuts", I look for the stocks that are being driven by news, events or even price point crossings...gambling in its purist since. Once I find one, I time my trades completely by technical indicators...always. Regards, LG

To: Robert Graham who wrote (10008)	4/6/1999 6:00:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

analysis of sentiment and TA go hand in hand. TA is just another means of analyzing the psychology of market participants. personally i rely heavily on put/call - ratios for my short term trading decisions, a very direct indicator of sentiment,if a contrarian one. but chart formations are also expressions of market psychology. a contracting triangle with declining volume reflects increasing uncertainty, a key reversal reflects a sudden change in sentiment,and so on. the various technical tools employed are merely mathematical refinements, but ultimately they all try to measure the market's mood.