MDA - Market Direction Analysis Message Board

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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 670.97

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Nov 7 4:00 PM EST

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To: HairBall who wrote (4629)	1/24/1999 1:00:00 AM
From: StockOperator	Read Replies (2) of 99985

Some very good posts on TA. Monty I agree with you wholeheartedly. TA when utilized properly works. It works on blue chips, utilities, internets. You can apply TA to trending prices, falling prices, or even to forecast the latest turn around in the internet stocks. I will even go as far to say that it can even predict when a company thats been depressed for years, is ready to breakout on the chart to hit higher prices. I'm willing to prove that last statement. Look at a long term chart for ACLR. Here is a company that went public late 96 around $8.0 and quickly shot up to over $15.0 in Jan 97. After that move up, its been on the fast track down for the past two years. Current price $.71. Look at the chart. It has been flat for many months. Oh yes, I found this company by running an insider trading search on one of my programs. Insiders recently purchased 100,000 shares between $.90-2.0 in August and Sept. 1999. But yet the stock hasn't taken off - YET. Based on my long term work on the chart, I believe this company's stock price is ready to take off in the next couple of weeks. A serious pop from current levels. Or how about VSNR at $1.5. Another stock beaten down over the years. This breakout should be more apparent because its a week old already. Pressure is building. Anyway, I am a firm believer in TA. All the clues you need to trade effectively are on the chart. And its like anything else in life the more time spent with it the more proficient you'll become. I'm on my way to California, but I wanted to say that many of my charts are hanging at the edge of the cliff. There are many divergences between stocks like GM that are extremely bullish to an index like the DOW which is barely holding on to support. I've been consistently bullish for the past two months based on what I was seeing in the Russell and Transports. Their performance lately has been poor to say the least. IMO, this coming week is crunch time. There is almost no room for slippage in most of the indexes. But remember that its the close on Friday that important. The market can easily fake you out the first two days of the week only to make a quick reversal. If the market does break Mon or Tue look for confirmation from as many areas of the market as possible. My gut tells me that we are still headed higher. But its never good to fall in love with one direction in the market. I wouldn't want to jump in front of a run away freight train. Good luck trading this week. SO

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