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

To: d. alexander who wrote (24444)	11/27/1999 4:50:00 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69786

Dorothy, I do agree that the DJTA as an indicator is distorted right now as the rise is due to artificial conditions (OPEC restricting output), but perception is more important than fact and the rise in oil prices though short term is adding a perceived inflationary component. That is partly being reflected in the DJUA. Some institutions use the DJUA as a surrogate for the market, trading between bonds and the component stocks of the indices. It is old world thinking, but they still control a lot of money. The drop in the DJUA is reflecting a cautionary stance by some big market players. Given the rise in bond yields and given that the market especially the NAZ has had a great run this year ( 54 percent rise) at some point booking profits and going to the security of bonds has to be an attractive alternative. Short term top being indicated by Favors next week ( 1 to 4 percent pull back): jerryfavors.com