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To: Steven W.; M-cubed; AdamSelene235; arete; Black Agnes; Cicero; David; Fractal Trader; ...
Don't take that Puplava stuff seriously!

Don't take that Steven W. stuff seriously.

After having been told twice, Steven W. still doesn't know the difference between the S&P 500 and SPDR's (S&P 500 Deposit Trust Exchange Traded Fund).

Look carfefully (at least more carefully than Steven does) and you'll see the name of the issue at the top of the chart is S&P 500 SPDR's SPY. SPY is the SPDR symbol. Steven means to use the SPX symbol but isn't paying attention.

The chart Steven W. meant to show (three times and still gets it wrong) is here. Note the name at the top is S&P 500 Large Cap Index ($SPX), note the prices on the right edge and the volume.

Nor did he pay attention to the price - SPDR's are around $93 whereas the S&P 500 index is around $933 (a ten-fold difference), nor to the volume - SPDR volume is around 50 Million whereas S&P 500 index volume is around 2 Billion (a forty-fold difference).

The shape of the SPDR price graph tracks closely the SPX price graph because arbitrage sets the price of the SPDRs to match the SPX, pretty much within minutes of a move off fair value.

Whatever conclusions you wish to draw from Steven W.'s "Technical Analysis", bear in mind it's from someone who is isn't paying attention to the basic data or to the issue he's graphing and misunderstanding.

One can argue that we're bearish, but at least we know why we're bearish. Steven W. doesn't even know what he's bullish about. But after all, it is your money.

28 posted on 05/23/2003 3:22:10 PM PDT by Starwind
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To: Starwind; Steven W.
Starwind, you need to take a chill pill.

Free Republic is great for reasoned debates, acting as a gentleman in your demeanor. Personal attacks -- we expect to see that in the democratic underground.
34 posted on 05/23/2003 5:00:15 PM PDT by Fractal Trader (Free Republic Energized - - The power of Intelligence on the Internet! Checked by Correkt Spel (TM))
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To: Starwind
The bull/bear ratio is at its highest level since 1992 per Adam Hamilton's latest essay. Not a very bullish sign. I am amazed that anyone can look at the broader market and be bullish, but I guess a difference in opinion is what makes a market.
38 posted on 05/23/2003 7:34:33 PM PDT by Soren
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To: Starwind
If Steven has some ...Money i'm talking...I assume one of us stupid pepole will have most of it someday...Hey!..It's a Free enterprise system!
41 posted on 05/24/2003 2:12:04 AM PDT by M-cubed
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