Subj : Market Action To : All From : Paul Rogers Date : Wed Feb 25 2004 05:35 pm


Prices rose a bit today, but volume fell -13% below average.  That's
called a "negative divergence".  It's Bearish.

Looking at the 5-day chart, prices have been basically flat all this
week.  If the market keeps this up for a few months, a flat horizontal
"trading range", that could take the place of a correction.  But a
correction could "repair" the market's recent excesses in more like a
few weeks.

If you're investing stocks, the things I've been writing about
concerning the supply & demand equation, the way volume interacts with
price to indicate investors' enthusiasm, apply to your stocks as well.
Just tracking price isn't good enough!  You need to collect volume data
as well.  When the price & volume action isn't behaving positively you
need to watch carefully and be wary.  When it shows investors are
bailing out of the stock, even if prices aren't falling yet, you should
protect yourself.

 Price     Vola-     Momen-    Volume    Oscil-    Summ.
 Change    tility    tum                 lator     Index
 -__+      -__+      -__+      -__+      -__+      -__+

 _|__      _|__      __|_      _|__      _|__      ___|     02/19
 _|__      _|__      __|_      _|__      _|__      ___|     02/20
 _<__      _|__      __|_      _<__      <___      ___<     02/23
 _<__      _|__      __|_      _<__      <___      ___<     02/24
 __<_      _|__      __|_      _<__      _|__      ___<     02/25

Timing Signals:  I don't use or recommend timing signals, but they're
fun to watch.  If I did though, well, I might use something like this.
(Be warned!!  It tends to whipsaw around signal points!)

Last Signal: BUY        Date:  11/24/03 S&P:    1052
Winner or Loser:  tbd                   By:     tbd

See my market tracking charts for '01-'02 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.angelfire.com/or/paulrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html

Paul Rogers, paul.rogers@angelfire.com -o) http://www.angelfire.com/or/paulrogers /\\ Rogers' Second Law: Everything you do communicates. _\_V .... Ed, who's at the door? -Last words Rusty & Edies ___ MultiMail/MS-DOS v0.35 --- * Origin: The Bare Bones BBS (1:105/360) .