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

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To: Vitas who wrote (36378)5/22/2002 9:20:02 AM
From: Terry Whitman  Read Replies (1) of 52237
 
I agree. Reduced my small cap position last week. The A/D line should be topping out here. This would confirm the start of Phase 2 of the bullish cycle. There should still be another push higher left in it later in the phase. I will completely close small cap positions then.

Historically, the A/D line diverges in the 1st half of phase 2, and declines just enough to fool the majority into thinking a bear market is starting (or in this case, that the bear was never over). Then, it generally turns up and puts in a second top about equal or higher than the 1st one late in the 2nd phase. After that, the A/D should diverge from the large cap averages for the rest of the bullish cycle.

We're now at 8 months out from the start of the cycle- dead on timing for the start of phase 2. The $64 Question 2 me is whether the 'end of phase 1' low is in or whether it is still ahead.
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