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

To: Lee Lichterman III who wrote (31651)	10/28/1999 8:54:00 AM
From: Jack T. Pearson	Read Replies (1) \| Respond to of 99985

From the jump in bond prices and futures, I know the ECI must have been better than expected, but I don't yet know how much better. However, I have noticed that the markets appear to be very responsive to random noise in the economic numbers. The markets are giving huge significance to variations that are less than the margin of relative error in these numbers. That's not to say that the employment cost index isn't rising, just that it isn't possible to know what it is to one or two parts per thousand.

To: Lee Lichterman III who wrote (31651)	10/28/1999 8:58:00 AM
From: pater tenebrarum	Respond to of 99985

like i posted yesterday, somebody already knew. we'll get a big rally today and considering the sentiment/liquidity situation my guess is may last a while. it could actually go further than most people think...major down-trend lines are likely to be broken today. trannies and utilities had big bullish engulfing candles yesterday, many measures are still oversold, bullish consensus is extremely low and the market did not break down under a barrage of bad news. now we get the slightest hint of good news and a major rally ensues... i was expecting a capitulation sell-off before a bottom could be put in, but once again, it was not to be. the correction is probably over. regards, hb

To: Lee Lichterman III who wrote (31651)	10/28/1999 9:03:00 AM
From: donald sew	Respond to of 99985

Lee, The futures are up very strong so now we need to watch the follow-thru carefully. Fortunately I closed 40% of my short position yesterday since I dislike playing news. Now the question is whether we still see SECTOR ROTATION and poor market internals especially the new LOWs. Have noticed that some who were bearish recently are throwing in the towel. My position is that if sector ROTATION continues, it aint over yet. During the recent selloff I was not overly bearish, and am not overly bullish either right now. For now Im still holding to a trading range, but if new highs are produce I do not think they will be across the board. seeya