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.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (4722)	4/24/1999 11:23:00 AM
From: DD™	Respond to of 15132

T Theory: The Bull Market to Continue? I have referenced T Theroy in several earlier postings, but as a refresher... Stumbled across Terry Laundry's T Theory while reading one of the online business publications (can't remember which one). The T Theory seems very plausible, if for no other reason that it "back tests" rather successfully, i.e., the theory seems to hold up to historical scrutiny. Simply put, T Theory states that a declining Advance/Decline (A/D) line symbolizes a "cash buildup" phase in the market, where this "cash buildup" then fuels a subsequent stock market advance equivalent in duration to the time in which the A/D fell from peak to trough... ttheory.com If one believes that the recent improvement in the A/D line, and the corresponding broadening of the market rally to the mid and small cap sectors does continue, T Theory predicts a further market advance for the next 12 months. Bottom Line: Using this as a backdrop, one should maintain their stock mutual fund positions, realizing that there will be the inevitable and unpredictable corrections along the way. T Theory is a technical tool, and as such, it does not explicitly factor in fundamental data like interest rates and earnings. However, it implicitly factors in these fundamental data, as investor behavior (as represented by the chart formations) is based, in-part, on macro economic and company-specific fundamental data. Clearly, T Theory supports/reinforces Commnder Bob's continued bullishness. DD