A Tale Of Two Indicators by Andrew Tomlinson
ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:10 (22-27): A Tale Of Two Indicators by Andrew Tomlinson
What do you do when two apparently similar indicators give opposite signals?
On July 6, 2004, I was feeling pretty pleased with myself. The stock market was falling and my short positions were making money for the first time in a couple of months (hey, stay on one side of the market for long enough and you're sure to be right sooner or later). One of my short positions, Micromuse (MUSE), gapped down 20% at the open on a revised outlook.
When I checked the market later in the day (I trade from
home, so the fir...