Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sultan who wrote (40580)	2/18/2000 3:14:00 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 99985

GE as a market bellweather, using an end of day 3 box reversal P&F chart with 2.38% boxes. 165.51857 161.67080 157.91248 X * < Bearish R/L 154.24153 X O X * 150.65592 X O X O * 147.15367 X 1 X O 143.73283 X O O 140.39151 X C * O 137.12786 B O X * O 133.94009 X O X O 130.82642 X O 2 * 127.78514 X * 124.81455 A X * 121.91302 9 O X * 119.07894 X X O X * 116.31074 4 X O X O * 113.60690 X O X 7 O X + 110.96591 X O X O X X O X + 108.38632 X O X O X O 6 8 X + 105.86669 3 O X O X O X O X + 103.40564 X X X O X 5 O X O + 101.00179 X O X O X O O + 98.65383 X O X O X + 96.36045 X O X 2 + 94.12039 X X 1 + 91.93240 X O X + 89.79527 X O X + 87.70782 B O + 85.66890 X + 83.67738 X + 81.73216 O X + 79.83215 O X + < Bullish Support Line 77.97631 O X + 76.16362 A X + 74.39307 O X + 72.66367 O X + 70.97448 O X + 69.32455 O + 67.71298 + 66.13888 9 9 0 8 9 0 Given GE's history, I consider a trend change negative anytime I get three O's below the previous column of O's, and the trend positive with three X's above a previous column of X's. The trend line matters but it's secondary to these signals. DATE: Box Size: Went Negative - 10/16/87 13.36 Went Positive - 02/15/89 12.16 Went Negative - 09/20/90 13.67 Went Positive - 01/30/91 15.38 Went Negative - 09/01/98 79.83 Went Positive - 11/04/98 89.79 Went Negative - 01/28/00 133.94 The trend is now negative (on a sell signal) and even though the action is above the active Bullish Support Line, the unofficial Bearish Resistance Line is in control of this chart. The first bearish price objective off the top is 130 and the second is 119. The first breakout price objective is an incomplete (it's incomplete until the current column of O's reverses up) is 113. Take care, Eric

To: Sultan who wrote (40580)	2/18/2000 12:49:00 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 99985

Hi Sultan, I've not checked out the HUMC earnings news so I can't comment on them. I've watched that whole sector explode - I only hope for my consulting business that its reflective of increased sales I may see down the line... but I think its out of proportion with the market opportunity. Since I scan several thousand stocks nightly I see all the big increases in activity in many small caps. They invariably make excellent shorts within a few days of their activity peak. I guess we will find out in the fullness of time how they fair, but given the run ups, I no longer believe that small caps will be a safe haven in a market correction. They will get corrected as well now. And when money starts floating back into the system, if the scare was big enough, it would seem unlikely that they will float back into the small caps again, but who knows. Essentially small companies being bid up to billion dollar valuations - its like a Bre*x in every pot! (Hey, a new campaign slogan for someone). ediT: I started writing this last night and am just pressing sumbit now...