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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: ed doell who wrote (29515)	5/14/1999 3:13:00 AM
From: Doug R	Read Replies (2) \| Respond to of 79459

Ed, First some words about the proper TA perspective that must be taken into account as far as any chart is concerned: Stick with the chart...any story, rumor or fundamental says nothing about where the stock price is going to move. The company is the company...the chart is NOT the company. Once the price gets where it's going...the story is still there...the rumor is still there... the fundamental is still there...but the price isn't there anymore. Some of the move into a blowoff top is sometimes justified as far as a long term horizon goes. The rest of a blowoff top is usually due to idiots chasing the move and, for the most part, getting screwed for their idiocy. I'm not saying this to be confrontational...it's just the usual state of affairs. As far as normalcy goes...I'll insert "IATV" into this statement: IATV is a blowoff top with no new fundamental juice to take it over the top. The high was made by idiots chasing it. The volume on the high was the smart money distributing. The smart money is gone until a new reason becomes evident to take the price higher than that last guy's buy at the top. Got any REALLY NEW reasons?? The chart says there aren't any. Just like APCO's chart did...Just like Iomega's chart did. The universe of charts is littered with blow-off tops. To ignore a blow-off top is to fall in love with an impersonal entity. I last posted that the "smartest" way to play IATV is to put the 2 point moves in your pocket. Nothing has changed since then due to the overall activity of The chart. Where do the "stories", "outlooks" and "business models" come from in the small-cap arena?? They come from small management...small investors...small analysts. And just because there is "institututional" investment in a smallcap, that doesn't mean that those institutions aren't "small" (on a relative basis). Stick with the chart...the chart will get you in low and out high. The company will almost always stay small. reality, Doug R