Forum Archive Index - November 2000

["Graeme & Jill Christie" <bayvu@ihug.co.nz>]

Peter, you tell your mate Simon I'm not very happy today. I waited all
bloody night for Amanda at that Irish pub down the road, and when I finally
got her on her mobile this morning she muttered something about babysitting
for her brother... looks like I'm going to have to get one of these charting
thingies...
-----Original Message-----
From: Peter Maiden <pmaiden@today.com.au>
To: sharechat@sharechat.co.nz <sharechat@sharechat.co.nz>
Date: Friday, 3 November 2000 08:38
Subject: [sharechat] SKY chart still says wait a few days to buy ...


>Graham - bought your SKY shares yet?
>
>Last night I met up with my mate Simon who explained that price channel
chart of SKY I was on about yesterday.
>
>Some new Belgian pub in CBD Wellington. Pleny of Stella Artois and other
unprouncable foreign beers. Plenty of people enjoying temselves and lots of
money being spent. State of the country isn't too bad after all.
>
>Simon at a look at the updated SKY price channel chart and said 230 is the
price.
>
>Simon said if I had my laptop with me he would show me something else. I
did. Simon said "Hey man - must be something wrong with you - carrying 3
years of SKY price history with you. You must love that stock man"
>
>Within minutes Simon had created a ROC chart for SKY. ROC being rate of
change of the share price. Won't bore you with the details.
>
>SKY has a ROC of 82 at the moment - Simon says that means you don't buy
just yet. You have to wait until the ROC gets to 100 before you buy.
>
>By now a Kylie Bax look alike (we later found out her name was Amanda ) had
oveheard our discussion and started taking an interest.
>
>Simon explained to Amanda that charting is big in USA.. So much so that
charts drive stock prices. There are so many chartists that when a stock
hits it's buy price on a price channel chart of when the ROC hits 100 on its
way up they all jump and buy. That pushes the price up. When the price hits
the stock sell price they all sell and the price goes down. People think
that chart reflects the market activity but in a lot of cases the chart
drives market activity.
>
>Simon then explained that fund managers then stuff this surefire system up
because they feel compelled to buy for no other reason than the price is
going up etc.
>
>Amanda was really interested in all this but Simon then gave her a good
lecture and told her that she should select the stock she is interested in
on more fundamental criteria. Then use charting methods to optimise the
potential wins. Really good lesson in this.
>
>Simon went through how much money we could have made following SKY and
buying and selling when the charts said we should. Truely amazing stuff.
I've lost the workings - or filed the workings away somewhere on the hard
drive but can't remember where in the stupour of the Stella's and the
excitement of it all . I'll find them and post the summary later.
>
>However it can't be all that good because as we left Simon said 'mate - can
you pick up the tab because times haven't been that good lately. I've had a
bad run .... '
>
>While I settled the tab Simon was last seen hopping into a taxi with
Amanda. He said she was interested in seeing more of his charts back at his
apartment ....
>
>Peter
>
>--- Move to a better address ---
>       + today freemail +
>    http://www.today.com.au
>
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