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

To: James F. Hopkins who wrote (22805)	8/12/1999 7:35:00 AM
From: donald sew	Read Replies (1) \| Respond to of 99985

James and All, It is with interest to watch when the market drops the BEARs intensify and when the market moves up the BULLs intensify. As for me I have be bearish for some time now and still holding to my position that this is a corrective phase/process which actually started in APRIL with the extreme sector rotation, and at that time I did not say that the market could not go higher but if it did it would only be a few sectors. And yes, I did also trade to the long side, before anyone says how much I missed out to the upside. Although I am bearish, I would not discount the possibility that this correction is over. I just feel it is alot safer for me and my specific trading style to play my short-term signals and if the move is large and Im in the right direction, then better for me. The point Im trying to make, and not addressed to any specific one, is that it could be dangerous at times to get caught into strong opinions concerning the direction of the market, and that applies to either direction. As mentioned yesterday per my research concerning "W" formations, there is a 9 out of 10 chance that some sort of a retest will occur on corrections of 7% and greater. So if I get a CLASS SELL signal soon I will play it to the downside for a retest. My strategy then will be that if the market then gets close to that retest area I will then hedge my position on the longside as insurance. If the previous lows do not hold, I still have a short position and if it does rebound and form a strong bottom then I also have a long position. Of course it is not that easy since I will still have to close the opposite position and avoid getting whipsawed. My point - is it really an efficient way to trade while having strong opinions on the direction whether up or down. seeya