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At 01:02 AM 1/30/98 -0500, Dick Byrd wrote:
>
>>Why would 1000 on the SP be an important point (or 8000 on the DOW)? What
>>is special about these round numbers?
>- - - - - - - - - -
>Gwenn:
> They are important because we THINK they are important - And if enough
>people
>think they are important, they are. If everybody thinks it is going to
>rain tomorrow, that
>doesn't affect the weather at all, BUT if everybody thinks the stock market
>will rise tomorrow, it will. Please, play along and perpetuate the >fantasy.
>
>Dick
>
>
>
I suspect that this kind of crowd psychology is hugely real. There are
probably a number of really honest people out there (among you RTs) that
understand this very well. And there are some who can take advantage of
it, sometimes this involves piercing through the fantasy, taking advantage
of the lemmings heading for the cliff. That is, when the market is
especially gloomy, go long. When it is dileriously greedy and optimistic,
go short.
I have tried to look for this situation but I can't see through the fog.
When my indicators tell me a given commodity or security is shooting up a
bit fast and I buy puts, too often it keeps going north for a while.
petena9090@xxxxxxxxxxxxxx
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