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

To: Gersh Avery who wrote (39914)	2/12/2000 1:50:00 AM
From: michael r potter	Read Replies (1) \| Respond to of 99985

"Wall Street Uncut", some good audio interviews each week: wallstreetuncut.com thanks, Mike

To: Gersh Avery who wrote (39914)	2/12/2000 5:19:00 AM
From: donald sew	Read Replies (5) \| Respond to of 99985

Hi, Jerry Favors has discussed the "3 PEAKS and DOME" in the past, and a few days ago it was also mentioned that floor traders were concerned about this formation. According to the text-book, the DOME should peak around APRIL/MAY, however I believe that the DOME already peaked. Here are 2 comments which I have posted on our website, and there is also an explicit chart of the "3 PEAKs and DOME" at the website. seeya >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Title: 3 PEAKS and DOME Date: 02/12/2000 ------------------------- One could argue that the DOME already crested on 12/31/99 for the SPX. Lee was kind enough to put the chart of the 3 PEAKS and DOME on this site. If you go to that chart, I could argue that the SPX is already at either point #25 or #27 and heading for a retest of OCT 99 lows. The timing is not in line with the text-book, but we should keep in mind how fast the market is moving. As mentioned in my previous post on this topic, if one averaged the DOW and NAZ together, such average would be around 14,000 DOW points which would be the DOME in mid JAN. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< Title: 3 PEAKS & DOME Date: 02/11/2000 ------------------------ I had a long discussion with LEE on the subject of the DOME in the "3 PEAKS & DOME". My belief was that the DOME may have already been achieve, in that it was a STEALTH DOME. It may sound ridiculous, but lets look at it from an averaging perspective, between the DOW and the NAZ. The last rally started OCT and at that time the RATIO between the DOW to NAZ was about 4:1(DOW was at 10,000 and NAZ around 2600). If you averaged the rise between the NAZ and DOW from the OCT LOWS, that average would have been around 14,000 DOW points. NAZ - rose about 1600 NAZ points times 4 = 6400 DOW POINTS DOW - rose about 1700 (6400+1700)/2 + 10000 = 14,050 Of course as the NAZ rose more than the DOW, the ratio between the DOW:NAZ would decrease from 4 to below 3, so the above was just to paint a picture and not totally accurate. So thats my arguement that the DOME on the "3PEAKS & DOME" may have arrived in mid JAN when the DOW hit 11,700 and the NAZ hit 4300. Hope that makes some sense. If you look at the SPX, one could argue that the 3 PEAK & DOME was formed.