I posted the following last year on the great Birinyi:
"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:
To 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
From Mr. Worden:
There is an article on this in the on line Users Guide, but it doesn't mention any names. I invented âTick Volumeâ 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 âTick Volumeâ 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 âhisâ invention, âMoney Flow.â âMoney Flowâ is âTick Volumeâ 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 âTick Volumeâ 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"
"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:
To 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
From Mr. Worden:
There is an article on this in the on line Users Guide, but it doesn't mention any names. I invented âTick Volumeâ 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 âTick Volumeâ 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 âhisâ invention, âMoney Flow.â âMoney Flowâ is âTick Volumeâ 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 âTick Volumeâ 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"
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