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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: d. alexander who wrote (23400)	9/3/1999 2:11:00 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68396

Dororhy, The SP sell signal is purely a technical signal and only good for intra-day/overnight trading. Opening gaps have a tendency to fill and based on the technicals, we are overbought at the current levels. The primary signal tends to work best when the market is trapped in a range as opposed to strongly trending. The signal is not an indication of the long term trend. Amazing we are slightly oversold based on one of the longer term indicators I track. So I agree with Clint that short term we could go higher, especially if companies consistently beat the downwardly revised earnings estimates. We are about to enter earnings season, that focus will move the market now that the economic reports are out of the way. I track the SP500 as it is a better indication of overall market health. The idea is go long stocks when the signal is on the buy side and short when the signal is on the sell side. You still need to do your work on the individual indices and stocks for the group you are going long/short. It is not a perfect system, but the structure of the system works better for me.