11 replies to this topic

[Douglas]

Barrons, usually the bastion of fundamentalism, has a technical article in its free content space this week at

http://online.barron...lusives_weekend

The article focuses on the risks associated with rising stock prices and continually falling volume. It's not a precice timing tool, but rather a warning of fewer troops on the front line of the bull's charge to the moon.

[da_cheif]

volume is a product of price.....not vice versa...sharply rising prices will invite the volume.....slowly rising prices invite sellers.......and relatively few buyers.....when da boyz want to start selling short they invite the public in by advancing the market sharply to accomodate their short selling.......remember its not the buying that causes rising prices....its the sharply rising prices that invite the buying.......(Ney) http://w3.tribcsp.com/~fredj/ney.html
remember ..letting barrons...(the mouthpiece of the street) do your thinking for u...ur in big trouble......allways fade what comes out of that propaganda machine........allways think like a criminal when it comes to the market........and cast aside what you have been tawt about how the market works....

Edited by da_cheif, 14 April 2007 - 08:12 AM.

[Tor]

Thanks Cheif for the article. Can I ask, what is a "bender" in the US? In the Uk it is used as an common expression to describe a homosexual. Slang i.e. someone who is bent, therefore not straight. What does it mean in the US? Thanks.

[dasein]

Whatever you think of Barrons, it has had at least one exclusively technical columnist for years, someone I consider rather smart and a true sceptic: Michael Kahn Director of the Market Technicians Association, and Columnist for Barron's Online klh

[da_cheif]

Whatever you think of Barrons, it has had at least one exclusively technical columnist for years, someone I consider rather smart and a true sceptic:

Michael Kahn
Director of the Market Technicians Association, and Columnist for Barron's Online


klh

has he been a raging bull for years???

[da_cheif]

Thanks Cheif for the article. Can I ask, what is a "bender" in the US? In the Uk it is used as an common expression to describe a homosexual. Slang i.e. someone who is bent, therefore not straight. What does it mean in the US?

Thanks.

geeziz u britz and ur words........how about "bloody".......snort....

http://www.google.co...c...en&q=bender
http://www.google.co...&...D:en&wxob=0

[fib_1618]

The article focuses on the risks associated with rising stock prices and continually falling volume. It's not a precise timing tool, but rather a warning of fewer troops on the front line of the bull's charge to the moon.

It's not all that surprising that Barrons asked Michael Kahn to write the piece who has had a bearish slant on the market for many years now.

His bottom line in that "with most major indexes well below their February peaks, which are respective resistance levels, and volume drying up at a steady pace, the conclusion has to be that the stock market is now running on empty" would be best applied in bear market conditions and not in bull markets where the NYAD and NYUD lines are rising concurrently. It is therefore not the quantity but the quality of volume that counts under such market phases. And in this respect, a cursory view of money flow that's available for investment, as represented by the cumulative advance/decline lines, shows very clearly that we continue to move in gear to the upside with very little pause.

Furthermore, volume does not precede price, it confirms it. Only breadth of market leads price and this has been proven day after day after day for anyone who has sat down and taken the time to study such phenomenon.

what is a "bender" in the US?

A "bender" is an excessive binge usually associated with alcohol...example "Fib had a terrible hangover after his all night bender in celebration of hitting the 100 million dollar lottery!" (yea, right)

Fib

[n83]

The article focuses on the risks associated with rising stock prices and continually falling volume. It's not a precise timing tool, but rather a warning of fewer troops on the front line of the bull's charge to the moon.

It's not all that surprising that Barrons asked Michael Kahn to write the piece who has had a bearish slant on the market for many years now.

His bottom line in that "with most major indexes well below their February peaks, which are respective resistance levels, and volume drying up at a steady pace, the conclusion has to be that the stock market is now running on empty" would be best applied in bear market conditions and not in bull markets where the NYAD and NYUD lines are rising concurrently. It is therefore not the quantity but the quality of volume that counts under such market phases. And in this respect, a cursory view of money flow that's available for investment, as represented by the cumulative advance/decline lines, shows very clearly that we continue to move in gear to the upside with very little pause.

Furthermore, volume does not precede price, it confirms it. Only breadth of market leads price and this has been proven day after day after day for anyone who has sat down and taken the time to study such phenomenon.

what is a "bender" in the US?

A "bender" is an excessive binge usually associated with alcohol...example "Fib had a terrible hangover after his all night bender in celebration of hitting the 100 million dollar lottery!" (yea, right)

Fib

why say Kahn is bearish (just because you are bullish? and the article is otherwise?)

in fact i remember his article from 2-3 yrs back on how the Trahan composite bubble post-bubble run that indicated naz was going to 2500

"Only breadth of market leads price and this has been proven day after day after day for anyone who has sat down and taken the time to study such phenomenon."

EVEN that is not true..go back to 1994

Edited by n83, 14 April 2007 - 09:48 AM.

[...]

volume is a product of price.....not vice versa...sharply rising prices will invite the volume.....slowly rising prices invite sellers.......and relatively few buyers.....when da boyz want to start selling short they invite the public in by advancing the market sharply to accomodate their short selling.......remember its not the buying that causes rising prices....its the sharply rising prices that invite the buying

Aw, c'mon. Price and volume feed on each other in both directions. Or not.

There's nothing so utterly nebulous and uncertain as volume since no one knows for a fact who is doing the buying or selling. Were they the smart guys or the dumb guys? Will they still be the smart or dumb guys tomorrow or next week or next month?

A volume spike can be either a high or low. A lower volume retest of a high or low may mean something. Or not. More often than not, a volume spike was the price extreme and didn't invite anything other than a reaction. A low volume pullback can turn into a spike upward or a continued low volume decline. And vice versa. A big volume spike price advance may mean a continued advance on consistently lower volume. Or not. And vice versa.

Then there are volume distortions, whether they be holiday induced, expiration induced, trading rule induced or induced by something else. And, all the while, there's a buyer for every seller and a seller for every buyer, and nobody knows who the smart guy of the pair is beyond the fact that it can't be both of them.

While, if I'm long something, I like to see expanding volume on an advance and declining volume on a pullback, I've also seen too many violations of those standard rules that I don't pay a whole lot of attention to them.

Price rules.

Edited by ..., 14 April 2007 - 09:52 AM.

[n83]

volume is a product of price.....not vice versa...sharply rising prices will invite the volume.....slowly rising prices invite sellers.......and relatively few buyers.....when da boyz want to start selling short they invite the public in by advancing the market sharply to accomodate their short selling.......remember its not the buying that causes rising prices....its the sharply rising prices that invite the buying

Aw, c'mon. Price and volume feed on each other in both directions. Or not.

There's nothing so utterly nebulous and uncertain as volume since no one knows for a fact who is doing the buying or selling. Were they the smart guys or the dumb guys? Will they still be the smart or dumb guys tomorrow or next week or next month?

A volume spike can be either a high or low. A lower volume retest of a high or low may mean something. Or not. More often than not, a volume spike was the price extreme and didn't invite anything other than a reaction. A low volume pullback can turn into a spike upward or a continued low volume decline. And vice versa. A big volume spike price advance may mean a continued advance on consistently lower volume. Or not. And vice versa.

Then there are volume distortions, whether they be holiday induced, expiration induced, trading rule induced or induced by something else. And, all the while, there's a buyer for every seller and a seller for every buyer, and nobody knows who the smart guy of the pair is beyond the fact that it can't be both of them.

While, if I'm long something, I like to see expanding volume on an advance and declining volume on a pullback, I've also seen too many violations of those standard rules that I don't pay a whole lot of attention to them.

Price rules.

TOTALLY AGREE