Re: Why are value investor types so rigidly opposed to TA?
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MSFT starts to reach $102, $104, $108 and then the sellers at $100 instantly realizes "Holy crap, I should never have sold that darn fine stock MSFT" since they now would have had a win. They seriously consider buying the stock back, despite the higher price, and many do. That leads to added buying pressue.
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Someone just sold MSFT at a profit/or is just breaking even at a given price..... IMO the only new "GUARANTEED" new buyers are players who SHORTED the stock at $100...and are now scrambling to cover causing the stock to climb higher .....even if its just a technical rally and NOT based on new positive fundamentals
Anyone that did SELL...and is now justifying re-entering at a much higher price level,should seriously reconsider "the trading" vs. the "buy and hold stratagy"
Stephen [img]/images/graemlins/cool.gif[/img]
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