Because of the amount of selling in the 3200 to 3400 range. We won't make any new lows from here and if we touch below 3600, it won't last long. If I am wrong about this, then look out below because it will be a full blown crach again. There is no reason for us to sell below this level and all you TA guys can take a hike. If it weren't for us fundamental guys, you wouln't even have anything to talk about. What you do is about as good a reading tea leaves and the way you all talk about it like it is a "sure thing" that it has to act the way you say because "the chart say so". What a bunch of crap! Charts don't make any profits, revenues, new products, sign up new customers, develope new technology, or increase profit margins. Those are the things that make the stock world go 'round, not "charts".
Get you TA head out of your TA ass and balance it with some common sense.
Undoubtedly you are right that fundamentals ultimately drive valuations for companies in the long term. Without cash flows etc, there is no company, well certainly in the long term.
I started out as a pure fundamentalist because that is what makes sense. I learnt some of the rudiments of TA purely to see someone else's perspective and got a mighty surprise as I listened to what they were saying. TA can help pinpoint the time or the price at which a series of prices MIGHT change, or MIGHT bounce or MIGHT go through.
There is no certainty. But all I can say is one thing. I never got my TIMING right with purely fundamental investing. With some TA (and I guess much TA depends on your own analysis and interpretation of that analysis) I massively improved my timing and hence my profits.
The fact does remain, regardless of what the markets did or did not do, regardless of what DIGL has done (which I am a big fan of), that DIGL did turn around at $75, it did fall to $56 (lower actually) and $60 has proved to be both a ceiling and a floor. All this was enabled by use of TA in some form or other.
I agree with you that the underlying driver of the company's value is its actual business activities. I believe DIGL to be a very exciting prospect, primarily because of its business activities which are already producing great revenue and profit growth. Thereafter, I need some way of identifying when might be a good time to buy or sell.
Hopefully you now see this as a common sense contribution to your eloquent posting.
input. I guess I went a little overboard because I do look at the charts a little myself. It seems though at times like this TA people really come out in force and, I am aggitated with the market's action anyway.
On one thing we can definitely agree is our fondness for this stock. I like what I see in this company. I am a big fiber fan and think it is THE industry of the next 10 years. I also own ETEK/JDSU, HLIT, PMCS, and a little BVSN. Any thoughts on why Tektronics (TEK) is trading at such a low PE. I am not really interested but did notice that they are competition for DIGL. My only guess is the low Profit Margin they are having. I really would like for this stock to base in here a little more so I can buy more of the stock at these price levels.