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

To: Suresh who wrote (25135)	2/10/2000 9:05:00 AM
From: Alan Smithee	Respond to of 68206

Suresh, I was responding to Thomas's post on the banks, in which he commented that the bond market is confusing the wits of all the pros. I don't trade bonds myself. From the Dorsey site: The Dow Jones 20 Bond Average is a long-term bond indicator which helps us weigh the advantages of holding interest rate-bearing securities. This average is plotted on a point and figure chart with a box size of .20. The average moves slow and does not often give signals, but when they occur, we pay attention. A sell signal, which is given when a column of Os exceeds a previous column of Os, suggests that rates are about to rise. The opposite holds for buy signals. The low pole is a chart formation on the point & figure chart. It consists of a down move of O's on the chart that exceeds the last colum of O's by at least 3 boxes, then there is a reversal back up on the chart, with at least a 50% retracement back up the chart. Here's the chart: 03.0 ------------------------------------------------------+------------------103.0 102.8 A \| O X \| \| 6 \| 102.8 102.6 X X \| O X \| \| O \| 102.6 102.4 X O X \| O 6 \| \| O \| 102.4 102.2 X O X \| O X \| \| O X \| 102.2 102.0 --8 O X --+-----4 X --+---------+---O X O ------------+------------------102.0 101.8 X O X \| O 5 \| \| O X O \| 101.8 101.6 O X 9 X \| O X \| \| O X O \| 101.6 101.4 O X O \| O X \| \| O 7 O \| 101.4 101.2 O X \| O \| \| O X O \| 101.2 101.0 O --------+-----------+---------+---O X O ------------+------------------101.0 100.8 \| \| \| O 8 \| 100.8 100.6 \| \| \| O X \| 100.6 100.4 \| \| \| * O X O \| 100.4 100.2 \| \| \| * O X O \| 100.2 100.0 ----------+-----------+---------+-------O --O --------+------------------100.0 99.8 \| \| \| O \| 99.8 99.6 \| \| \| 9 \| 99.6 99.4 \| \| \| O X \| 99.4 99.2 \| \| \| A B O X \| 99.2 99.0 ----------+-----------+---------+-----------O X O X O \| -----------------99.0 98.8 \| \| \| O X O X O \| Top98.8 98.6 \| \| \| O O X O \| 98.6 98.4 \| \| \| O X O \| 98.4 98.2 C O \| 98.2 98.0 ----------------------------------------------------O \| -----------------98.0 97.8 O \| 97.8 97.6 O X 97.6 97.4 O X O 97.4 97.2 O X O Med97.2 97.0 ----------------------------------------------------O X 1 ---------------97.0 96.8 O \| O 96.8 96.6 \| O 96.6 96.4 \| O X 96.4 96.2 \| O X Bot96.2 96.0 ------------------------------------------------------+-O X -------------96.0 95.8 \| O 2 95.8 95.6 \| O X 95.6 95.4 \| O X 95.4 95.2 \| O X 95.2 95.0 ------------------------------------------------------+-O ---------------95.0 94.8 \| 94.8 94.6 \| 94.6 94.4 9 \| 0 94.4 94.2 9 \| 0 94.2 Hope this is of some help.