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Re: sp500 update



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EXACTLY CORRECTUMUNDO!!

Earl Adamy wrote:
> 
> Putting things in perspective, I'm a discretionary trader whether day
> trading or position trading so I'm not following a fixed set of rules which
> says divergence = buy/sell. Divergences can last a long time e.g. the entire
> rally into the July highs was a divergence from the April highs. When I see
> divergences, I add the information to the weight of evidence I use to
> evaluate the price action and my trading time frame, however I use the price
> action to define the trend and I do not fight that trend. Going into this
> morning we had  good breadth and strong upward price action with little
> evidence of selling pressure (in spite of volume and McOsc divergences) so I
> looked for trades on the long side rather than the short side. The
> divergences told me not to hang in for the last dollar, so when my price
> objective was hit, I got out. As I'm writing this, the price action appears
> to be weakening but I'm not about to go short until the price action
> confirms the other divergences. Hope this helps.
> 
> Earl
> 
> -----Original Message-----
> From: ken weiner <traderksw@xxxxxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Friday, October 30, 1998 12:22 PM
> Subject: Re: sp500 update
> 
> >Earl, Ben
> >  Granted that there is negative divergence in the McOsc, but given the
> >seemingly characterisic lengthy lag times for response of prices (weeks to
> >months - at least from recent historical examples) wherein lies the value
> of
> >this divergence as a timing tool in the immediate present/future?
> > Or, alternatively, are you guys viewing this divergence as an enabling
> >indicator which sets the stage for the directional move which  you don't
> act
> >on unless and until your proprietary triggering indicators (which I trust
> >you will share with the RT brotherhood before Gary makes his next
> prediction
> >or Slick Willie is re-elected) signal the exact timing of an entry.
> >  Pearls of wisdom appreciated by all, Ken
> >