Subj : Market Action
To   : All
From : Paul Rogers
Date : Tue Sep 13 2005 06:23 pm

Content-type: text/plain

The "wholesale" PPI came out, and except for energy, of course, prices
were flat, inflation under control.  In the Street's mind this seemed to
make it less likely the FOMC would hold their next rate increase at next
week's meeting.  Prices fell "right out of the gate".  After the oil
pits closed down a bit, prices rallied back about 5pts (still
underwater), but that didn't stand.  Prices fell more even aggressively,
to close at the lows.  Volume increased to +7% above average.

This afternoon I heard a novice mid-west investor call a radio show for
advice about buying NorthWest Airlines.  This person was told the
company could go bankrupt, and could lose all the investment.  Analysis
wasn't what this investor wanted to hear.  "It's a good company.  I
think they'll be able to fix this."  It was an emotional response to a
local company.

If you think it's a good company, BUY IT!  Not the stock, the company.
When it comes to the stock, what the market thinks IS what it's worth.

Remember Kmart?  They filed bankruptcy, and when they came out all the
old stock had been liquidated (stockholders got nothing) and all new
stock had been issued.  With that recapitalization they went out and
bought Sears.

So here's a tactical rule:  If you "want" to buy a stock, DON'T DO IT!

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

 __>_     _|__     __|_     __|_     __|_     ___|     09/07
 _>__     _>__     __|_     __|_     __|_     ___|     09/08
 __>_     _>__     __|_     __|_     __|_     ___|     09/09
 _|__     _>__     __|_     __|_     __|_     ___|     09/12
 _|__     _>__     __|_     __>_     _<__     ___>     09/13

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:  09/06/05 S&P:    1233
Winner or Loser:  tbd                   By:     tbd

See my market tracking charts for '03-'04 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html



Paul Rogers, paulgrogers@yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

.... American kids have Ninetendo, Japanese kids have homework
___ MultiMail/MS-DOS v0.35

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 * Origin: The Bare Bones BBS (1:105/360)

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