Stock Attack -- A Complete 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 : Stock Attack -- A Complete Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: StockOperator who wrote (42420)	2/10/2001 7:20:05 PM
From: StockOperator	Read Replies (3) of 42787

Most of the street has been dead wrong as to where this market has been going. Even the guys with the technical skills, the Bloch's and Acompora's of the world have been preoccupied with things like support and resistance levels when imo the thing that is most important in downtrending markets is that downtrend line itself. That's why all this recent talk of "if the Compx can close and hold this 2700 level it's positive overall." Well we got the 2700 close. We even managed to close considerable higher than 2800. But what ultimately happens is the market runs into the one predominate force that has overriden everything else during the past couple of months - that downtrend line that has been pushing prices lower since March of last year. The brick wall that prices ran into this week. Yet the Finnertys, Applegates and Cohens of the world continue to tell us that the bottom is near. CSCO was a screaming buy to many at $40, but yet here we sit at 29 after breaking a low this week on incredible volume. With the infection spreading to many of the generals in the tech sector. Of course one of the great lessons learned is that you should never fight the FED. But as a technican who painstakingly attempts to silence the noise of opinions with only what the market is giving me in the moment. It forces me to side with the actions of price and volume even if it means going against the actions of the FED. My work tells me that irregardless of what other actions that might be taken by the FED or even on the tax front, we are not going to see any significant push in prices for at least the next seven weeks. That is why I know that the views by many of the pros on the street to buy right here is in my opinion way too early and perhaps dead wrong. We are now heading into a phase where tech stocks across the board are going to be tested hard by an overwhelming force that has been pushing prices lower for sometime. How are stocks going to handle that pressure? If CSCO is any indication I think we should all be worried (smiling if you're short). I know it's early. There is plenty of time for CSCO to snap back and grind sideways into the 2nd quarter. But yet the REALITY of the moment is a break into new lows with volume to back it up - that's it nothing more! If prices cannot hold the recent lows established, the market is telling me that the fundamental slant by so many of the pros is lacking regarding where our economy is going. So often do we hear that the stock market looks out six months ahead. So despite the two rate cuts we have the generals breaking into new lows. What is the market telling us, and more importantly should we respect it? In the next couple of weeks we are going to see whether or not these stocks can hold up. I can tell you without a doubt that the formations for many of these charts tells me NO WAY. Stocks like ADCT and AMZN (this week) will join the ranks of CSCO and ARBA in breaking into new lows. BMCS which has had a great couple of weeks will not be able to stand the pressure that's coming (watch this week). ORCL, SUNW, AMD, INTC, KLAC, YHOO, HGSI...... way too many to list here, have chart patterns that tell me that a break of those lows is coming. How those companies respond to the pressure and set themselves up for the 2nd quarter (technically) is my main concern. The inability to set themselves up in a bullish fashion tells me that the words "this time it's different" will genuinely apply to the market's reaction to an accomodating FED. Good luck trading. SO

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next