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

To: Jorj X Mckie who wrote (22040)	8/4/1999 1:31:00 PM
From: Ms. X	Read Replies (3) \| Respond to of 99985

Remember that the Dow bouncing can be just a few stocks that have reached support levels. Again, I haven't looked at the market today but for instance; if IBM were up 5 today that would have a heavy weight on the Dow. If I could look at all of the chart of the stocks on the Dow that carried it up 150+ points I'd be able to tell if the bounce is off support or a desperate rally. Maybe I can do that later. Oh, Union Carbide is up over 13 isn't it? Being bought - that would count for a lot. There ya go. I know you know all this it is just a recap for some. I think the bounce comes from people thinking the low has been hit and doing some buying. It may be perceived as a short term oversold and for sure we could have some rallies here that would make some believe that the selling is over. But, the NYSE BP at the same time will most likely move down. It has been in the past when the Dow moves up only a few stocks are in the action. Same with the OPTI. Whenever that reverses one way or the other it is only a few Nas stocks that rally or drop depending. Then, all Hell breaks lose and they start to drop or rally- like crazy. I view the rallies when the NYSE BP or the OPTI reverse down (especially the NYSE BP), as selling opportunities. I haven't listened to CNBC but I bet they are saying something to the tune of "Have we reached a short term bottom, is the selling over... Dow rebounds, huge market rally yadda yadda..." I bet the NYSE BP drops again today. Over 7% drop in three weeks is pretty fast. I think that says something impressive and very important. Eeek.