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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (59656)	8/31/1999 7:43:00 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 86076

Jorj, it is an immediate, short term bullish indicator. the theory behind it goes like this: if the a/d line makes a lower low, while prices don't, it suggests that sellers are not prepared to accept lower prices, a sort of sellers' exhaustion if you will. however, the fact that we had end-of-month window dressing today may have skewed the indicator somewhat. there is also an interesting negative divergence in a/d volume on the INDU...it made three lower highs which were mirrored with three higher highs on the INDU itself. this is clearly negative. however, the picture is less clear with other indices. i am also starting to wonder about the transports...they have broken to a fresh ST low, but the INDU is not confirming that as of yet. surely new lows in the transports portend an economic slowdown, so why are bonds not rallying? it is a mite confusing, unless you subscribe to the new era theory that the transports are in fact meaningless...