That Pesky Nasdaq

Date: / /Rank: 4Comment: 

Date: / /Rank: Comment: A couple of thoughts on this article. As everyone knows, the more points that prices touch a trendline, the more important it becomes. Your article s trendline touches the minimum required (2) before prices cross below it. This would seem to say that perhaps this trendline was not of great import. If one were to draw a trendline roughly connecting the following dates: 2/15/99 3/1/99 5/24/99 8/9/99 10/16/00 one might see that this trendline has been touched (and repelled prices) 5 times, the most recent just a couple of weeks ago. Your trendline s angle was relatively steep, implying that it could soon be broken. The one I suggest is more gradual, has been contacted more times, and perhaps gives a truer picture of the current long term trend. If this is the case, then one should have been buying as prices dipped down around 10/16/00, while most others were jumping ship. As one also knows, the more times a trendline (support) is tested, the weaker it becomes. So perhaps this is a last hurrah rally after numerous times of being tested. One could also draw a down trendline across the recent tops, with both creating a triangle. Perhaps we are in a large continuation pattern that will see much higher prices in the future. Or perhaps it will resove itself to the downside. Can t say. I ve simply offered a different way to view the same data, not necessarily the way that will prove to be correct. Thanks for the article. Keep up the good work!