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

To: ALTERN8 who wrote (18778)	6/29/1999 1:49:00 PM
From: donald sew	Read Replies (3) \| Respond to of 99985

Hi all, If the market closes at it highs, I will be getting quite a few indices which just entered the OVERBOUGHT region per my short-term technicals. Wouldnt it be interesting if we got the senerio of "RUNUP TO THE NEWS/SELL THE NEWS". It would be contrary to the mainline thought of a strong rally if the rate hike is only .25. seeya

To: ALTERN8 who wrote (18778)	6/30/1999 11:14:00 PM
From: StockOperator	Read Replies (2) \| Respond to of 99985

ALTERN8, Could this be the incredible rally you mentioned? Sorry it took me so long to respond to your post. I have been very busy lately with a new house, trading, the beginning process of upgrading my entire trading system and just enjoying some time off. My schedule should continue to be hectic through the month of July but I am look forward to spending more time on the thread. In response to your question - yes I do believe this is the beginning stages of what will play out as a incredible move. The significants of the past couple of days strength happens to coincide with breakouts in some important chart patterns. Here are a couple of my observations: The rut broke through that rising wedge formation. Small caps are really beginning to come alive. The DOW has bounced beautifully off of its trend line from the October bottom. Watch for this index to make a more pronounced move or breakout in the weeks ahead as it completely takes out this three month trading range. The NAZ completely blew through its old high. The techs should once again resume their leadership move especially when you consider where many are priced at in relationship to their old highs. However, I think plenty of stocks in this group are at different positions. Stocks like CSCO have been incredible strong. Its overall corrective pattern has been one of the most bullish out of the entire tech sector (CSCO just broke through a six month rising consolidation pattern - upside could be huge). MSFT closed at the high of the month today, another stock should see big upside from here. Plus, take a look at the recent action in stocks like JPM, IBM, GE, JNJ and MRK (drugstocks are breaking out after their recent beating). Also keep in mind in one of my last post I made mention of the fact that many of the recent internet IPO are beginning to break out after significant weakness during the last couple of weeks. I believe this is a good pond to fish in. An area to really keep an eye on right now is the transports. The weekly charts are screaming for some kind of breakout here. They really NEED to start to breakout here. So yes I do believe all the avgs are going higher. The next couple of months should be a lot of fun for the bulls. I hope to be back in full force in the next couple of weeks. Especially because I want to be around for the next serious downmove in the avgs, which I believe is going to be very ugly. This rally - bust should all play out over the next couple of months. Until then many profitable trades. SO