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Strategies & Market Trends : Point and Figure Charting

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To: Ms. X who wrote ()7/29/1998 10:29:00 PM
From: Ms. X  Read Replies (2) of 34814
 
With interest rates coming into the spotlight again, I thought it a good idea to list those indicators which help us determine the risk in bonds. Higher interest rates always effect the market adversely. This week a lower than expected housing report surprised the market and the utilities have started to break down. Not to mention bank and real estate sectors have been declining. All these are what we look at. I'd keep an eye on gold too.

Here are some of the indicators for the interest rate watch, and where they stand right now.

Bond Indicators:
The Dow Jones 20 Bond Average X's 104.99 reversal to O's at 104.8
The NYSE Bond High-Low Index O's 56.7%
NYSE Bond Advance-Decline line negative
The T-bond futures (currently September) O's on sell signal with possible spread triple bottom at 121.75

It's all about putting a big picture together. We talk about watching the NYSE BP for the main direction in the market, but keeping an eye on a grouping of indicators such as the bonds, gives you a clue as to where the market will be headed. If the banks and interest rate sectors start to break down (which they have) and the bond indicators turn bearish - your thought has to be that interest rates may rise and therefore, the market does what????

Jan I am
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