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

To: Terry Whitman who wrote (32745)	11/8/1999 8:03:00 AM
From: donald sew	Read Replies (1) \| Respond to of 99985

Terry, If the futures dont improve much before the open, we should see a gap down at the open. I have noticed on quite a few stocks that with a significant gap down today we may get some ISLAND REVERSAL signals in individual issues. As for buying todays dip, Im more inclined to wait another day or so. I also believe that an intermediate bottom is set and that this pullback is a buying opportunity, but not today. With the PPI coming out WED morning - if the news is good than we should expect a bounce but if not it could fuel the selling. It is possible that we may get a DOJI type day where we close near the open after intraday selling. Some may interpret that as a bullish sign but per the CANDLESTICKs it is a sign of indecision which commonly occurs at short-term tops. I have no clue how the PPI will be viewed on WED, but to stay in the market with some safety, I have been boxing the market right before the economic reports and will do it again on WED. If the market was flat and slow, then this strategy wont produce much, but with the volitility it is still a workable strategy. Previously I boxed the NDX and on FRIDAY I closed the long position. I will reinitiate the long positions again tomorrow in preparation for the PPI numbers on WED morning. BOXING reduces the returns but also reduces the risk. The key to making this strategy work is the closing of the positions. I am one that stays away from those STRONG COMMENTs like "BACK the TRUCK up and BUY or SELL" or "SELL or BUY EVERYTHING". I have doubts on those who make strong comments on those that express extremely strong opinions. I have already notice that a very good trader, who I wont mention, was stating a very strong position in one direction, but was able to to switch very quickly and go opposite of the position that person was pushing so hard the day before. That is a sign of a very good trader, but is everyone that nimble. seeya