News Links and Chart Links Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : News Links and Chart Links

SPXL 224.48

+0.4%

Dec 5 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Les H who wrote (262)	6/4/2001 11:12:50 PM
From: Les H	of 29602

WHAT TO EXPECT NOW June 4, 2001. Ord Oracle. A third top of a "Three Drives to a Top" pattern was completed on May 22. In most cases the third top of the "Three Drives to a Top" pattern is a double top. However, this particular time the third top was only a single top. The downside target for this pattern is 1200 area on the S&P. Short-term indicators are still oversold. The "5 day ARMS" closed today at 6.11. Reading above "6.00" are oversold. The "Percent Volume" indicator closed today at .486 and is back into neutral territory. A light volume bounce is bearish and so far on the recent bounce the volume is light. We plan to short the SPY once this bounce is complete. A three day candlestick pattern called "Three Black Crows" was completed May 30. This pattern suggests another decline is coming after the bounce is completed. Flat the S&P for the moment. We took profits at our 1:30 Eastern update on the short QQQ position and covered at 45.70 for a 6.2% gain and sold the July 45 QQQ puts at 2.70 for a 8% gain. We are not bullish here, but a retrace of 50% of the decline from the May 22 high is possible and take the QQQ back up to the 48 region. The "5 day ARMS" on the NDX has been oversold, closing Friday at 8.62. The bearish "Specialist Trap" is still in effect and a downtrend is still expected after the short-term consolidation is completed. The recent rally does have light volume, which is a bearish sign, but more time is needed in this consolidation to unravel the oversold condition. Normal consolidation can retrace from 38% to 60%. The stronger the downtrend the less the retracement. A 38% retracement would take the NDX to 1890 and a 50% retracement to 1930. That would correspond to 47.10 to 48 on the QQQ. We will plan to reenter short position on the next retracements. The current "Specialist Shorts" came in at 51.4% according to "Christopher Cadbury (212-249-1131)". Readings 50% and above are bearish. However, they are usually early on their shorting, and they see another decline coming. The Longer-term picture remains bullish for Gold and the XAU. According to "Advance GET" on the monthly charts, a target near the 330 level on Gold is projected. Most gold stocks look to be good buys on a longer-term perspective. We are staying long the XAU. The XAU did pull back to the 57 area we talked about in the past. The pull back thus far looks to be corrective, however it looks like more time is needed to complete the pullback process. Another week or two of consolidation would not surprise us. marketweb.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next