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

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To: byhiselo who wrote (2026)3/5/2001 9:12:07 PM
From: isopatch  Read Replies (1) of 52237
 
A lot of the stocks I follow

(in the energy and defense sectors) are developing some interesting bottom patterns after good corrective declines since early January. And I suspect other cyclical and natural resource industry groups may also be exhausting downside momentum and displaying more constructive chart patterns and tape action in here.

What I'd like to bring up for consideration by the group is the value of keeping clearly in mind that we may NOT see THE bottom and a new Bull Market begin anytime soon. So much of the thinking I see here seems to implicitly or explicitly develop out of that assumption that I wanted to call attention to it and offer an alternative that I believe is far more likely to play out between now and year end.

Based on the Bear Markets I've been through, as an active investor, it's a lot more likely that we are getting within a week or two of a good counter-trend rally that would continue through at least most of April before the final leg down in the Bear Market gets underway.

It will be very important to watch the leadership of this rally. Every Bear Market I've seen has resulted in a change of leadership for the Bull Market that follows. And part of that process is for the old leadership to underperform during counter trend rallies as the baton is slowly passed to the new leadership sectors.

IMHO we are due to see that process take center stage in the next several months.

Isopatch
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