MDA - Market Direction Analysis 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 : MDA - Market Direction Analysis

SPY 665.67

-0.9%

Nov 17 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bobby beara who wrote (58401)	8/23/2000 8:31:50 PM
From: Saulamanca	Read Replies (1) of 99985

I haven`t traded a nut in a long time. Coco`s been promising that patty melt and a dive since naz 1800.<ng> The best way for the market to advance would be as Cramer says a gentle creep up or as Paragon says a crawl. The Paragon Traders' Update - August 21, 2000 Fed Watch Expiration week is now behind us again and the markets full attention is on Mr. Greenspan and the FOMC meeting Tuesday. The S&P 500 futures continue to trade in an orderly fashion with 1500-1510 providing the resistance and 1480-1485 providing the support. As expected with the FOMC meeting nearly the market is becoming ultra compressed. Thursday and Friday produced back to back multi-day compression patterns setting the market up for a major move. In addition, Mondays have been choppy uneventful sessions leading setting up moves mid-week. We would fully expect this pattern to continue this week with FOMC meeting Tuesday. It really is not important to try and guess the direction of the next major move as it will be large enough to trade and profit once it is identified. As we have stated all year long the this is just part of the process the market is going through setting up for a significant year end mega-trend move. Just like a young child through the market must crawl before it can walk. The first hurdles are the three-day range at 1482-1507. A move above or below this range will produce a minimum 25-point move in the direction of the breakout of the range. This will be the trade of the week and potentially setup a bigger picture trade. Market Outlook Where does the market go from here? To no surprise the S&P futures have formed back-to-back compression patterns just one day before the FOMC meeting. This compression as well as the results of the meeting will set the S&Ps back in motion for a substantial move. Remember though that the institutions are not as quick as individual traders and will take several days to formulate their strategy following the news. With the S&Ps still within striking distance of the all-time highs and many mutual fund managers under performing the market the potential for a major move still exists. Remember we are nearing the final quarter of the year. If you are a fund manager your bonus is paid based on performance against the S&P 500. A move to new highs would force mangers to step up and buy as they will not want to lag behind the averages. As they buy this will push the market higher forcing over fund managers in the same position to buy. Continue to prepare for a major year-end trend move and how you will best profit from this move. We would be glad to help you formulate a strategy to capture this move. Have a great week trading. Past performance is not indicative of future results. *************************************** Paragon Trading, Inc. Visit our web site at www.paragontrd.com Email address: staff@paragontrd.com marketweb.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next