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

To: HairBall who wrote (12943)	5/5/1999 2:06:00 PM
From: Compadre	Respond to of 99985

LG: <<<You post far more than eight signals per month. Sometimes you post intraday reversals of your system's signals. For my benefit and others that read this thread, could you alert us to the signals you "actually" trade.Let us know when you determine your system's signals are important enough to motivate you to change your fund position. IE: At the end of today...going to cash, going long, etc. TIA>>> This is how the signals work: They are based on the closing price of the day. So if I give a signal in the morning, I usually post a second signal near the close of the day. If (for example) I go long today, and tomorrow the signal remains a buy, then I will not sell that day, and I would not sell until 15 minutes before the close if I get a sell signal. The trick is to get it as close to the closing price as possible. So as you can see that I may give a signal every day, but not every signal is traded. The best to get in is the first day de buy signal is generated. I must bring this to your attention and to the thread, that this system is strictly for the long side. I is not as effective on the short side. And I am working on a short program right now, but it is not ready for use. I don't like to post my trades, but I will make and effort to remind the thread when the signal is changing or in the process of changing. Since that is the optimal time to trade. And today is one of those days. But I have to caution everyone that I think this is a one day trade and that we are at a critical point. A lot depends on the next couple of days I believe, BWDIK. Regards, Jaime

To: HairBall who wrote (12943)	5/5/1999 2:31:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

To All: I have seen a post or two as of late regarding the effect of the lower capitalized Dow Industrials issues moving the Index as much as the higher capitalized issues. And, one post in particular that stated that those lower capitalized issues were now moving the Index the same as the larger capitalized issues. This was wrong, each dollar move per issue does not move the Index the same. I would like to clear up how the Dow Industrials Index is weighted. It is "NOT" capitalization weighted. It "IS" price weighted per share. This weighting is an on going process. So, stocks with a higher price per share effect the Index more than a stock with a lower price per share. Market capitalization plays no part in the weighting process. (IE: In other words, smaller cap companies with a higher price per share can have a greater impact on the Index than would a larger cap company with a smaller price per share. The weighting changes intraday due to price fluctuations. To see the present market weight of the Dow 30 Industrials go to: dowjones.com Then click on "DJIA Stocks". Regards, LG