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<DIV><FONT color=#000000>Hello everyone,</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV>I'm still trying to build my house and I'm sweeping out the shifting
sand. In this case, it's basic economics that I need to add to my
foundation. I have degrees in psychology and sociology, but I never took
an economics class in my life and it shows!</DIV>
<DIV> </DIV>
<DIV>I read the following in "DiNapoli Levels":</DIV>
<DIV> </DIV>
<DIV>"Markets are stable and tradable if they have reactions to any
significant price movement. They are unstable and dangerous if there is
sustained and violent moves in only one direction. This is due to the fact
that those professionals who have provided liquidity to the markets are on the
wrong side!"</DIV>
<DIV> </DIV>
<DIV>Are the professionals the market makers and specialists (I trade stocks
only)? </DIV>
<DIV> </DIV>
<DIV>Ira, if you're out there... you always say follow the money. I don't
know what that means or if I can tie that statement to the one above.</DIV>
<DIV> </DIV>
<DIV>I would love anyone's thoughts on these statements and liquidity in
general. Any suggestions getting a basic lesson in economics? I'm
not talking about learning about stock fundamentals. I'm talking about the
most basic principles that underlie the markets.</DIV>
<DIV> </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 & get their glad tidings: Peace will flow into you as sunshine
into flower; the winds will blow their freshness into you & storms their
energy, & cares will drop off you like autumn leaves. John Muir 1838 -
1914</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
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</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
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