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Replies to #28361 on The Black Box
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James Bondage

01/31/06 11:56 PM

#28385 RE: The Freep #28361

Sorry for not getting back to you before. Sounds like you like to use a variety of indicators to make your trades/calls.

I don't mean to disappoint you, but I am not from the same school. I swing trade, sometimes (close out positions in days if I don't like what I see). My parabolic call is really based on a couple things, none which you could put in you arsenal. They are:

1. I believe that we are not in a bear market and never have been. Things just got out of hand and had to correct themselves

2. The path of least resistance is up. Take out our current highs and we have nothing standing between us and 2800.

3. Tech is coming back at better valuation levels now and will be our leader up again.

4. The same indicators many traders use right now will be the one that keeps them on the sidelines when the real money is made by HOLDING quality stocks through earnings. It will be a gap-up happy time (ala BRCM) for many stocks performing well. The buy and hold mentality will gain favor again, but it wont be until Joe 6 Pack figures it out until the end of the run, precisely when institutions will be unloading again.

5. I see the consolidation in the beaten down telecom stocks - NT, LU, CSCO as an accumulation phase prior to this run up. At the end of a bull run, the telecoms will be the last gasp for stock leadership. Except for CSCO these last few weeks, where are they now? Nowhere near a top, thats for sure.

6. I work in the VOIP industry, and there is a major shift in communications right now. Tier One Telcos down to the small business owner that wants to expand thier products and services to thier customers (or even keep thier current customers) will be changing thier communication backbone infrastructure radically. And the government has to play along with these trends, as well as make FTTH possible, if our country is to stay competitive.

And my favorite....

6. Gut feel.

May I suggest that you read "The World Is Flat" by Thomas Friedman. This book provides a lot of insight and gives you a clue how these global changes are bubbling underneath the surface.

Hope that answers your question. Sorry for not providing you an "indicator" that you can use.