Don Sew is getting pretty firm buy signals.
Market Swing Discussion: Chat Room Notes and Recaps
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Posted by Nikko_thyme on Wednesday, October 09, 2002 - 11:28 pm:
Chat Notes: 10/9 10 PM
Daily Signals:
DOW: CLASS 1 BUY
SPX, OEX, NAZ: Borderline CLASS 1 BUY
NDX: OVERSOLD
Weekly Signals:
All indices are in the CLASS 1 BUY area, and the buy in window is until Mon. the 14th.
Monthly Signals:
DOW: Borderline CLASS 1 BUY
NAZ, NDX: CLASS 1 BUY
Don is holding a slightly larger than full 25% long position, which is comprised of a UOPIX long fund position, and 4 QQQ call positions. If the market falls from here Don will be adding to his long positions, where he may get up to 50-75% long. If the market goes up Don may also add to his long position if the declining trend line on the NDX wedge is broken to the upside. Using the wedge and a small rectangle which has formed on the NDX to measure downside, Donald thinks it may be limited to 760-775.
The market would not need to drop very much to produce daily CLASS 1 BUY signals, but it would be most reliable if the market closed at the low of the day and produced closing CLASS 1 BUY signals. If CLASS 1 BUY signals occur, the buy in window would be until the next day's low.
The Capitulation Indicator closed at 7.1 and has formed a mini double top with the 7.1 reading from 2 days ago.
During the last 3 days the NDX has formed a Tri-Star pattern which represents a pivot point.
The New High, New Low's have formed a positive divergence. The internals would need to reverse from here and not go lower to maintain the divergence. |
