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

To: theRedDog who wrote (33434)	11/17/1999 12:53:00 AM
From: theRedDog	Respond to of 99985

From Briefing.com: (Again: one of the few services who dare to forecast instead of just explaining what already happened) >>>>>>> Fed surprised us a little by raising the fed funds and discount rates by 25 basis points apiece... However, what didn't surprise us was the market's reaction... Traders convinced that Fed now done tinkering with rates for the remainder of the year... And with rates no longer an issue, investors can focus on earnings growth, momentum, improving technicals, etc... One factor which hasn't been discussed much lately is market breadth... Briefing.com noted during the correction the troubling pattern of daily new lows routinely outpacing new highs and daily/weekly decliners swamping the number of daily/weekly advancers...While we haven't seen really strong breadth figures during the rally, we are seeing a steady improvement in both the a/d and new highs/new lows indicators... Increased participation in the rally is a very positive sign for the intermediate-term... Another positive technical development which has garnered more attention is the jump in volume... Robust trading activity suggests to us that tax-related selling is over and that investors are trying to get a head start on the usual year-end rally... So far so good on that score. As we noted at the beginning of the week, just no real reason to bet against this rally right now what with fundamentals and technicals improving and favorable seasonals added to the mix... Our biggests concerns at the moment are the market's short-term overextended posture and the difficulty in finding value... Given that markets can remain overextended for relatively length periods and that momentum rules over value, neither concern is compelling enough to jump ship. <<<<<<<