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

To: donald sew who wrote (24128)	8/30/1999 3:12:00 AM
From: Lee Lichterman III	Respond to of 99985

Don I have been experimenting with a new short term trading system of my own and will be unveiling it next week probably on my normal charts. The only reason I mention this is that I can now plug in numbers to see the reaction in advance (time permitting) I just got home and was trying to put together a trading plan for this week and saw your post. I played around a bit and figured out I won't get a short term buy signal until at least 2 days at a level of 690 on the OEX. What makes this interesting is when I look at the scenario on the chart, it shows a potential bounce forming the beginning of the right shoulder of an OEX H&S formation. I agree with LG that H&S is not one of the most reliable formations but they do work on occasion and are dangerous enough to pay attention to. This move up I have projected for Wednesday or Thursday could be a quick bounce as you said is possible before another leg down that is equally or more strong. I think I am going to be changing my strategy to scalping any longs I make as I see potential danger here. This may be only a technical bounce. Of course this is in conflict with my prior outlook so I will be watching closely as the week passes to see which pans out but as I said, this has been working pretty well so far. Good Luck, Lee PS - A reminder, I probably won't have time to update my site all week. I will post if I do get a chance to do so.