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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (5714)	1/31/2000 3:38:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 9427

Let's talk about this market... Last week we had the short term indicators tell us that things would get a little touchy. They reversed pretty quick from their reversal up earlier in the month - that is pretty quick. If you have been following the charts you will see how that could have happened. Prior to the first reversal charts had been on a tear and most were so far above support that they could lose a hefty percentage before a sell signal was given. The volatility in the market provided ups and downs and in turn support levels were broken, sell signals created and the indicators turned. When things turned positive recently most stocks didn't trade on a tear and still moved up and down in a basing type action - so, the sell signals were closer at hand. Market turned and the sell signals were hit earlier. I'm speaking of the OPTI mostly because the 10 week and high low don't respond the same way (they turn in advance). We are still at a low level on the bullish percents. None of this is happening at the 50% level which is good and our dear old NYSE BP is still hanging in there by the skin of its teeth! We'll see what today does. A lot of stocks have sold off already. They have come down to the bottom of their trading band and may not sell off any more no matter what the market does. Just because the market looks weak doesn't mean every stock will dive to their death. As Tommy pointed out Qcom was oversold and would be a good buying opportunity even with the market being negative (http://www.siliconinvestor.com/readmsg.aspx?msgid=12712692). This is turning out to be very true. Other stocks are coming down to the middle of their trading range and into buy areas. I'm not panicking here because I see that this pullback has brought things to support levels and look what it is doing now.... bouncing off that support. Typical. This is why we say this is an art. I've been talking about the risk level and reverse level being low which puts us more in an opportunity space for buying equities than in a space for shorting. I find it is easier to have cash in your account for the buying opp after the pullback than trying to figure out what to short when the indicators turn negative especially at this level. (check out the feature on DWA where it shows the daily move. Very cool and you can see what is going on without having to look at the high and low and trying to figure out what the chart did...it is right there in blue X's or O's! I love it!) I'm really watching the DJBB, the TYX and the banks here. Banks are doing great, the DJBB gave some ground today and the TYX reversed up but both look to be changing directions for the better in general. The TYX just reversed its RS to O's and has broken two double bottoms. The DJBB is so over sold it isn't funny... Remember in February the DJBB gave the sell signal telling us interest rates were to be raised which didn't happen until July (?). If the DJBB tells us the bonds have bottom and if gasp it should give a low poll warning or a buy signal it may be a little bit before the market realizes the interest worries have dissipated. Let's wait and see but I like what is going on now. In short, I'm not horribly worried and only kicking myself for not buying Cisco on sale today and more QCOM. damn. However, one should still be very careful. I'm just looking at things that have oversold here. The market is weak without a doubt and stocks will have a tough time. I think though finding short candidates will be tough too. Take a break and watch for support levels and a show of basing. There will probably be some good stuff out there.