tag:blogger.com,1999:blog-7296410208500992185.post4337739897483415847..comments2023-10-30T05:03:34.290-04:00Comments on Vinny Catalano: Technical Thursdays: Hedge Funds and Downside CorrelationsVinny Catalano, CFAhttp://www.blogger.com/profile/13958861468295795061noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7296410208500992185.post-30064727014264183352007-07-26T21:46:00.000-04:002007-07-26T21:46:00.000-04:00Thank you, Grant. I appreciate the compliment. Gla...Thank you, Grant. I appreciate the compliment. Glad you find the blog worth your while.<BR/><BR/>re the price point item: what I am referring to is a price point that the market has created through its trading and made into an important price point (versus something artificial like a round number). For example, the 200 day moving average or a support line that the market has bounced off of several times or a trend line that has been in place for a number of months or years. <BR/><BR/>Think of it this way, stock market action is like warfare in which ground is gained or lost. It is at those important junctures that determine how the war goes. The same with stocks. Price points are the battle lines that the market participants, over time, have made important. <BR/><BR/>Therefore, when the market moves from a price point that has no significance as I have described above, then the move tends to be of lesser sustained value.<BR/><BR/>(Note: this is all technical analysis stuff and does not involve fundamental issues like P/E.)<BR/><BR/>Hope this explains the issue better.<BR/><BR/>Best regards,<BR/><BR/>VinnyVinny Catalano, CFAhttps://www.blogger.com/profile/13958861468295795061noreply@blogger.comtag:blogger.com,1999:blog-7296410208500992185.post-29873821638669712262007-07-26T20:39:00.000-04:002007-07-26T20:39:00.000-04:00Hi. I've been reading your blog for the past few w...Hi. I've been reading your blog for the past few weeks and I think it's great. I am a bit confused though - when you refer to the current correction as having started at an 'insignificant price point', what exactly do you mean? If the correction had begun at or near one of the thousands (12000, 13000, 14000, etc) would that have made it significant? Or is the price point insigificant in terms of P/E valuation?<BR/><BR/>GrantAnonymousnoreply@blogger.com