Dorsey Wright & Associates. Point and Figure 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.

Non-Tech : Dorsey Wright & Associates. Point and Figure

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ms. X who started this subject	8/7/2000 11:31:59 PM
From: Ms. X	Read Replies (1) of 9427

RE: Interest Rates. Don't forget to look at the TYX when trying to determine the future of interest rates. I'd post the chart here but for me to show the history I'd have to expand the chart and it would be way too large. The key points to look at are the major swings in the rates - when the DJBB gave a sell signal February of 1999 the TYX (which moves opposite) broke the BRL and moved higher until January of this year. At the same time the DJBB moved lower until basing April - June of this year. What we want to see is an absolute divergence between the two. No dawdling. Does the TYX move decisively in the opposite direction of the DJBB? If yes, we have a pretty good confirmation of trend. Right now the DJBB has broken out of a base and has given several consecutive buy signals. This is very strong. Even if the DJBB were to pull back I would not consider this negative at all. Unless of course it created a sell signal and in which case I'd check the TYX. The TYX has been breaking down since the beginning of the year, sell signal after sell signal. It is once again below the BRL and close to the bottom of its trading band. With the above picture I have a real hard time believing interest rates will be raised. I've felt this way for some time and when all the fuss was being made recently about Greeny raising rates again I was really watching the charts. There were pullbacks but the trend remained - a trend that in the past has not indicated higher rates. We would consider the picture bullish here. If there were to be a major change in trend, we'd change but I haven't seen it yet. Take a look at the two charts. Print them out if you can and mark the points where major reversals occurred. Then check them against interest rates history and you will get a good idea of what to expect. Hope that helped.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next