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

To: Vitas who wrote (16507)	6/10/1999 2:33:00 AM
From: Bull RidaH	Read Replies (2) \| Respond to of 99985

Vitas the Love Meatus, This is late March of '97 all over again, where the market broke below support (413 NYA), bottoming at 410 before one last quick rally back above support (up to 419.30) before the devastating decline took hold (a run down to 387). In this current case on the SPX, we broke below crucial support at 1315 SPX, bottoming at 1277 before rallying briefly back above support to 1335 SPX, before the current decline which has returned to the 1315 SPX support. Looks like this will go the way of 4/97, and we'll get the super slammo down to 1193.50 SPX/ 582 NYSE / 9850 Dow. The wave pattern from the 5/13 high (the beginning of the C wave correction) is turning out to be a grueling ENDING DIAGONAL. Ending diagonal's are a series of 3 wave (abc)patterns that form 5 total waves. We saw the first 3 wave leg down into the 1277SPX low, followed by a 3 wave up leg for wave 2 that terminated at Monday's late day high (right at the projection of the reverse head and shoulders for the dow, which was 10898). We're obviously in the wave 3 ABC pattern now, and you gotta watch out for that B wave... It can be a killer blumbo, retracing quite a bit of this down leg we're in from Monday's high before the C of 2 wave of selling begins. That's why I'll be looking to cover shorts into weakness either into the end of this week or early next week, where we have a very important 73 day cycle low due, recommending a buy of the low of that day for a profitable trade. When Monday's low (6/14) is finally cleared to the downside, the crash phase will begin. Meanwhile, I'll be watching for Sew's next class buy to confirm my timing on this short trade out. Regards, David P.S. Did you catch the latest from Favors? The guy's in outer space IMO on the call for an end to the Bull Market later this year. It may correct from 14,000 back down to 11,100, but after that, it's time for some Star Trekkin!! <g> Instead of Bull Ridah, I think I might go with Spock.... Wanna be Cap'n Kirk? ;o)

To: Vitas who wrote (16507)	6/17/1999 12:34:00 PM
From: Bull RidaH	Read Replies (5) \| Respond to of 99985

Vitas, The 73 day cycle low due for Monday 6/14 looks to have nailed the bottom, and the correction is now over. The correction from 1376 to 1277 SPX fulfilled the necessary 20% requirement for a Wave 2, so now, we begin the massive wave 3 rally off the 10/8/98 bottom. As long as Monday 6/14's NYSE low of 618 holds on a closing basis, I'll maintain a long bias from this point forward, looking for a summer rally that exceeds all expectations. 6.125 had been a long time targeted reversal zone for bonds, and with that now being achieved, Long bonds should be a long term great buy as well, and will bolster the coming rally in equities. Regards, BK (no more)