Trading Big Numbers

wayneL said:

Thinking more on this big/round number thing:

The SPI turned at 6401. But the SPI is a derivitive of the SP200 cash index which did not get to 6400 or a BIG number... Neither did the all-ords. So why does the SPI count as a big number but not the Actual cash indices?

Why would the index turn at a big number anyway? Do all these people with NAB, BHP and WPL think "Oh crap! The SPI has hit 6400... better sell now!"?

I can see the psychology in an individual name like "I'm holding Google till $400" and enough people thinking the same, But I still don't see it often enough, or significant enough to really take that much notice.

Why wasn't 1,500 resistance on the SP500? That's a nice round number? Why didn,t nasdaq stop at 2,500? I could pull up many more examples where BIG number mean nothing.

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tech/a said:

let me tell ya.
When I hit 50 that was a big number.
Sure as hell was significant.
Plenty of resistance.
At 70 It'll be support I'm looking for!

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tech/a said:

let me tell ya.
When I hit 50 that was a big number.
Sure as hell was significant.
Plenty of resistance.
At 70 It'll be support I'm looking for!

Click to expand...

Bronte said:

Hehe! very funny tech/a
Not looking forward to the Big 50
40 was great.....life changing

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tech/a said:

let me tell ya.
When I hit 50 that was a big number.
Sure as hell was significant.
Plenty of resistance.
At 70 It'll be support I'm looking for!

Click to expand...