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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: bruce-l who wrote (33093)	12/18/1999 3:38:00 AM
From: Doug R	Read Replies (1) \| Respond to of 79193

Bruce, this wk = 0.94 yikes The implications of such a low ratio are intriguing. As far as we've seen, a low ratio has forecasted a buying opportunity. This week, volume on the indexes has reached (excuse the rhetorical slant here) monumental proportions as the naz continues to new highs, the S&P keeps, basically, chugging along and the DJIA has tentatively reached toward record territory while interest rates have given little quarter in anticipation of continued Fed tightening to stem the possibility that Greenspan will perceive an intermediate term overly robust economic dynamic. The employment pinch that has been a large part of the focus has yet to produce inflation while oil prices beg for inflationary pressure. Money continues to pour into equity funds here as a result of a high level of employment. Productivity gains have outpaced expectations with a trend that is well set. Consumption really has nowhere to go but up for several years at least. European interest rate considerations bring "competition" into play vis-a-vis the size of the economic possibilities behind the euro and the US muscle behind dollar. At some point, this competition will set a benchmark high for interest rates on both sides of the pond. As I weigh all these factors, the stock market still wins. Sheeesh....the 13 dRSI system (now coupled with the 3drsi ratio) will still be my main short to intermediate term market timing tool. The line to watch here is from the RSI low on 8/10 to the RSI low on 12/14. If that line breaks down and the weekly ratio breaks below .6, some nastiness could be afoot. Doug R