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

To: Benkea who wrote (27836)	9/29/1999 9:22:00 AM
From: donald sew	Read Replies (2) \| Respond to of 99985

Benkea, You are correct, flatness would hurt a straddle; however I am some sort of a reaction in either direction and since I am somewhat nimble if I do sense flatness I will be out fast. Please understand that such post was directed to those who are not nimble and that this may be a good time to go to cash. I only mentioned the straddle to illustrate that I am unsure of the FOMC meeting. Actually I will be establishing a strangle since my shorts are profitable, and it would produce a no lose situation either way it goes, but I did not go into detail. seeya

To: Benkea who wrote (27836)	9/29/1999 2:09:00 PM
From: Casaubon	Read Replies (1) \| Respond to of 99985

Benkea, I'm becoming more and more convinced that chart patterns which break important support/resistance are a result of money "in the know". I therefore hypothesize that the breaking of 10,400 support on the triple top chart pattern on the dow, to signal a dow theory sell signal, was the result of money in the know. What do they know, that isn't public yet? I don't know, but I can hazard a guess it is interest rate related. My guess is another 1/4 point rise. It doesn't really matter which unknown piece of news is causing the selling. The fact of the matter is a major chart pattern has been formed on the DJIA; a triple top. The neckline was violated on good volume. The ramifications are more selling until the projected move (9500) is completed. At that point, I will look for a bounce. I follow a lot of small caps, and one by one they are being executed (thank TA I don't own any). By now, some are even forming bottom patterns!