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<DIV><FONT color=#000000>Hello everyone,</FONT></DIV>
<DIV><FONT color=#000000></FONT>&nbsp;</DIV>
<DIV>I'm still trying to build my house and I'm sweeping out the shifting 
sand.&nbsp; In this case, it's basic economics that I need to add to my 
foundation.&nbsp; I have degrees in psychology and sociology, but I never took 
an economics class in my life and it shows!</DIV>
<DIV>&nbsp;</DIV>
<DIV>I read the following in &quot;DiNapoli Levels&quot;:</DIV>
<DIV>&nbsp;</DIV>
<DIV>&quot;Markets are stable and tradable if they have reactions to any 
significant price movement.&nbsp; They are unstable and dangerous if there is 
sustained and violent moves in only one direction.&nbsp; This is due to the fact 
that those professionals who have provided liquidity to the markets are on the 
wrong side!&quot;</DIV>
<DIV>&nbsp;</DIV>
<DIV>Are the professionals the market makers and specialists (I trade stocks 
only)?&nbsp; </DIV>
<DIV>&nbsp;</DIV>
<DIV>Ira, if you're out there... you always say follow the money.&nbsp; I don't 
know what that means or if I can tie that statement to the one above.</DIV>
<DIV>&nbsp;</DIV>
<DIV>I would love anyone's thoughts on these statements and liquidity in 
general.&nbsp; Any suggestions getting a basic lesson in economics?&nbsp; I'm 
not talking about learning about stock fundamentals.&nbsp; I'm talking about the 
most basic principles that underlie the markets.</DIV>
<DIV>&nbsp;</DIV>
<DIV>Just trying to get a foundation under my house... thanks for the 
help!</DIV>
<DIV>Have a good week!</DIV>
<DIV>Linda</DIV>
<DIV>S<FONT color=#000000>wope's Mountain Photography<BR><A 
href="http://www.swopephoto.com";>http://www.swopephoto.com</A><BR><A 
href="mailto:linda@xxxxxxxxxxxxxx";>linda@xxxxxxxxxxxxxx</A><BR>Climb the 
mountains &amp; get their glad tidings: Peace will flow into you as sunshine 
into flower; the winds will blow their freshness into you &amp; storms their 
energy, &amp; cares will drop off you like autumn leaves. John Muir 1838 - 
1914</FONT></DIV>
<DIV><FONT color=#000000></FONT>&nbsp;</DIV>
<DIV><FONT color=#000000></FONT>&nbsp;</DIV></BODY></HTML>
</x-html>From ???@??? Sun Mar 07 20:40:04 1999
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Date: Sun, 7 Mar 1999 20:55:59 -0700 (MST)
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From: Dean Chahley <maui@xxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: STKS - ibd mkt direction
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Hi, I'm backtesting data related to determining stock market direction. 

Would like to know what those of you who utilize ibd & O'neal's system think
of his way of finding mkt direction...

Fox example, in mid dec98 both the s&p and djia gave buy confirmations while
the nsdq initially had sell & then about 1 wk later had a buy confirmation. 

My question with this example is, does the average (s&p) not have to drop AT
LEAST 5% before a new buy confirmation signal can occur? (this time the drop
was only 2-3%)

Any thoughts on this topic are welcome...

Thanks,

Dean