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Subject:  Re: Understanding buy timing and jargon Date:  10/17/2008  8:05 PM
Author:  StealthFisher Number:  2011 of 2244

Hi SS,

Sorry for the elementary questions but that's the definition of this chat group "Jargon and Definitions"

Relax, no one was born a finanical wizard. Ask away!

Can you please explain the meeting of "down 777 points" as was the case on September 29th?

Below is a link to a Dow primer. The Dow usually refers to the Dow Jones Industrial Average. There are other Dow averages as well...transportation for one,but usually "the dow" means the DJIA.

It's just a benchmark of industry in the U.S. It let's you know how industry is doing as a whole...that's all. We need some barometer of how business is doing over all. You don't need to know how to calculate it. When you hear that it dropped 777 points, that means the average dropped 777 points from where it was the previous day. Some times it goes up, sometimes down.

Can you please explain what is meant by "trading volume was down below 10,000"?

Now this may be a bit tricky. Are we sure we are talking about volume being down below 10,000...or are we talking about the Dow being below 10,000? I say this because the Dow recently dropped below 10,000 for the first time in years.

If we are talking about "volume" that just means the number of shares traded. Most stocks volume for a day is in millions of shares traded, not 10,000, unless it's a very small company.

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