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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Lee Lichterman III who wrote (23259)	5/22/2000 9:49:00 PM
From: Robert Graham	Read Replies (2) of 42787

I had an idea this pop may be coming based what I was seeing later in the day. it looks like an interesting setup that was developing on the SPOO. A small triangle on the 15-min chart. This usually means that price will whipsaw and frequently reverse from its initial direction out of the triangle. In the bigger picture, this did fit. So it looks like we had a type of reversal day off of a lower trend line that shows up on the daily SPOO chart. So this usually means the market will rally from here for a period of time. Still, the selling did not surprise me. This pattern of selling has been intact for some time now with no apparent change. Until this pattern changes, I will expect selling to continue. We have been in a large congestion trading that has taken the form of a larger triangle. Since we saw a type of hammer today, tomorrow will be interesting. Even though this is not a reversal with price closing above the open, this is still important, particularly where it has occured with respect to the lower trend line of this triangle. This triangle is getting very close to resolving one way or another. But since this is a larger triangle, there is much room for whipsaws and detours to fake the most people out before a direction is chosen. And the market appears to have a picnic with triangle formations where whipsawing and fakeouts happen the most frequently and the most dramatically. As far as predicting this pop in advance, I do not think this is possible. First off, I do not think it is possible to predict, only to anticipate and be prepared. Also I find the most accuracy to be had in the shorter time frames. Attempting to predict off of daily charts what the market will do from the perspective of the day trader IMO does not work. But many attempt to do this. This is just my opinion. :-) Bob Graham PS: My comments come from my trading of the SPOO. Even though this is not the entire market and only includes some of the techs, I find the SPOO provides allot of information relevant to the market, including the NASDAQ.

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