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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StockOperator who wrote (16219)	6/6/1999 9:13:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 99985

SO: Excellent market analysis... All major markets are pointing up... stockcharts.com We have a series of Double Bottom and Cup & Handle formations... Note the 50 day MA crossing of the 200 day MA on the S&P 600 Small Caps... stockcharts.com A lot of money is being shifted to small caps... As for CMPD... Looks good... It didn't make the 13's list because it didn't have 3 consecutive days of increasing MoneyFlow... Thanks for your comments... Jim

To: StockOperator who wrote (16219)	6/6/1999 9:15:00 PM
From: Robert Rose	Read Replies (1) \| Respond to of 99985

SO <That is why I believe the markets will start to rise attacking these resistance levels and position themselves for a breakdown or breakout once the direction of interest rates is decided by the FED. > This makes perfect sense to me. But don't you think 25 bps are already factored into the market? As I tend to think in terms of the inet sector I will use that as an example. The DOT rises back toward its alltime high between now and June 29, the rate of the rise depending one good/bad economic data reports such as the PPI and CPI. If the Fed raises the rate 50 bps (highly doubtful), the DOT breaks down going into the earnings season. If the Feds raise 25 bps, the DOT rises to test its high, and breaks out to the upside if inet bellwethers blow away earnings estimates. If the Feds maintain rates, the DOT powers to even higher highs, following a pattern more consistent with periods in which interest rates are not an immediate concern. Comments?

To: StockOperator who wrote (16219)	6/6/1999 9:34:00 PM
From: Casaubon	Read Replies (1) \| Respond to of 99985

I thought that CMPD based off it's long term chart was going to make an explosive move up That is a classic "stalled pattern" by candlestick analysis. The pattern has stalled at the high set in Q3 1997. I would wait for a close above 3.30 for an entry. Beware of a close at or below $2.00, as it is likely it would retest $1.34 if it does that. Or, if it gaps higher you could try entering using the gap as resistance to step out.