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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (59104)	9/1/1999 11:40:00 PM
From: red_dog	Read Replies (1) \| Respond to of 120523

Key Dow Levels for 9/2 UP through 10,950 DN through 10,850 "Bullish Triangle..." But we're not out of the woods yet! We stayed in a tight range today, and did not violate either of my Dow levels from yesterday. Instead, we formed a very nice triangle with the flat side on the top, which is bullish. So, tomorrow should be "easy pickin's". If we move solidly through 10,950 I would say the bull is probably back for a ride to the upper bounds of the channel. If, on the other hand, we move through the lower boundary of the triangle at about 10,850 - I would expect 10,650 to be the next stopping point. It really could go either way. The channel in the Daily Chart is so clear, so precise, that I expected this market to honor it one more time by continuing down to 10,600. But, if strength comes in here, that would be a good indication that we are headed to the top of the channel for a possible break. It will all depend on how fast and solidly the moves occur. What we need here is conviction! I think the world is somewhat afraid of this market right now, and if we can show strength, we should see buying as international players flock to the U.S. for safety. On the other hand, we are still very vulnerable to a downside move. Just watch those levels and particularly how fast we move through them. If we "mosey" (Texas for "move slowly") on up, that won't necessarily be bullish, even if we penetrate 10,950. We need a clear, solid move. Thanks for listening, and Good luck in your trading! Ed Downs