Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: bearshark who wrote (32277)	10/23/1998 1:36:00 PM
From: Thomas C (Hijacked)	Read Replies (2) of 94695

Does anyone else here see this 'take' I have on this market...? We all know the loooooong uptrend line we have on the DJIA from January 1995 to present where prices always bounced off the trendline as we went higher right? Well of course we have recently broken through that long uptrend line as of August 28 or so. Now that uptrend line becomes resistance when prices rally back to it, which is what DJIA prices are doing now, rallying right back up to that trendline. Alexander Elder, in his book "Trading for a Living" says that after a very steep uptrend is broken, prices often rally again and touch their old uptrendline from below and describes it as a 'near perfect shorting opportunity'. What seems to give this argument greater credibility is that we are currently at a .618 Fibonacci retracement which gives the resistance perhaps a little more significance. This trendline relationship seems also to be evident in tons of pricey stocks as of late too.... Tom

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