So Laslo Birinyi just called the bottom on CNBC...

As for Birinyi his stock analysis sytem seemed to be nothing more than more stock bought on the ask is bullish, more sold on the bid is bearish - I mean really, as if it were really that simple.

I had acces to his stuff for a while and (unsurprisingly) saw little correlation between what his system was suggesting and what was happening. I stopped reading it as it was IMO useless.

 

I might like a piece of that "Million Action."

 

A few years back one of the daily contributors at the dorseywright.com site did an analysis of Mr. Birinyi and his calls on TA, tops and bottoms etc. It appeared well researched, and while I have no idea of its validity, they made him (Birinyi) out to be very wishy washy and vacillating.

Additionally, here is question and answer at the TC2000 site to Mr. Don Worden:

Mr. Don Worden,
I have been a subscriber to your wonderful service for over 5 years and will be as long as I am capable of investing. Thank you and your sons.
I was an early subscriber to your newsletter on "Tick Volume" and was very impressed. If I am correct, I believe that your current "Money Stream" is an outgrowth of that concept. My question is how many ways can there be to measure the volume of money flowing into a stock. Laszlo Birinyi frequently mentions that he measures money going into and out of all stocks, "by computer." But I have never heard him explain the method. Investors Business Daily uses "Accumulation and Distribution" to measure the same thing. If these three methods are valid will they all give the same answer? Or, as I hope, is your method truly unique and superior to other methods. Thank you again. JJC

Mr. Worden:
There is an article on this in the on line Users Guide, but it doesn't mention any names. I invented “Tick Volume” in the late 50s. In the 60s I popularized it widely. Tick Volume is a tally of all individual transactions that pass on the tape, giving naturally greater weight to large transactions. Originally it had a phenomenal ability to contradict immediate price trends, effectively forecasting future moves in the opposite direction. However, as the market gradually went from 90 percent public dominated to 90 percent institutionally dominated, the large transactions developed an overwhelming negative bias. Eventually, after many years, I developed other tools, such as BOP, and I dropped “Tick Volume” entirely. It was carried on for a while by a brokerage firm named Muller and Company, who had been computing the data for me. They went out of business and, next thing, what do you know, a young guy named Laszlo Birinyi turns up with “his” invention, “Money Flow.” “Money Flow” is “Tick Volume” with the same flaws now as it had then. As a matter of fact, others also use it and publish it (including IBD). It was never protected under the patent laws and Mr. Birinyi is within his legal rights to publish “Tick Volume” and call it whatever appeals to his considerable promotional judgment. But I don't think I would ever sit down and break bread with Laszlo Birinyi. -DW

 

LOL! Hey Gary, thanks for an excellent and timely post.

OldTrader

 

Agreed.
You can throw "Money Flow" into the "round-file" as far as I'm concerned.
It's just an "indicator" that has a sexy "marketing" angle to it.
Nothing more, nothing less.

 

"Profit exceeded analysts' estimates at 58 of 101 companies in the S&P 500 that have released first-quarter results so far, even as earnings fell an average 37 percent from a year earlier, according to Bloomberg data."

So only just over half exceeded deliberately lowballed guidance. Of those some were financials which benefitted from unprecedented rate cuts in the quarter and accounting smoke and mirrors. In addition both large financials and non financials benefitted from significant currency tranalation gains on foreign earnings of around 50% of revenues.

Lots of rosy guidance from banks and others. I seem to remember INTC gave rosy guidance last quarter but saw this profits down 12% (but they beat estimnates ! Ra! Ra! Ra!, beat estimnates ! Ra! Ra! Ra!, )

That said, I took profit on some positions as a defence against a possible range breakout while I was sleeping - the range held interestingly enough. Markets can remain irrational longer than traders can remain solvent.

 

And what does this have to do with Lazlo Birinyi and his "money flow" analysis?

 

We are not worthy of the great Landis82. I suggest you do some work on yourself. Must be horrible wondering around with your issues. Try something that teaches humility.

 

I would suggest that you learn how to SPELL.
Your grammar is absolutely horrible.
Now that would be most relevant.
Have a nice Weekend!

 

just like the dow closing 2007 @ 15k+ right stock?