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

To: Michael Watkins who wrote (41432)	2/26/2000 9:51:00 AM
From: Rarebird	Read Replies (1) \| Respond to of 99985

<Catch them falling knives!> I wouldn't do that. I possess no biases in regard to these markets. I see an extremely optimistic index put call ratio of .68. Complacency has been growing each day this week. I look at support and resistance levels also. Dow 10,000 looked like support on the chart but the support didn't hold so now it is resistance on any rally. Next support levels: 9300, 8500, 8100, 7400. I'm not an index or futures trader so I don't follow the indices very closely. I lightened up somewhat on Friday. <its the best way.> That varies from investor to investor, trader to trader, investment to investment or trade to trade. Breakouts can be fake outs too and reverse as quickly as they began. That would depend on the extent of the base formed and the time element involved in the forming of that base. I look for major league breakouts also. That is why I bought PUMA at $99 when it broke out of a base and rallied 21% from 78.5-100 on February 15. I've found, however, that once a stock breaks out, it pays to ride the wild swings and not sell too quickly. You can miss out on big profits. <Very few bulls I've met are realistic at all> What do you mean by "realistic?" I agree that many bulls carry their own set of moral biases. But they have been right for the most part thus far. I'm seriously contemplating a short on the NDX via Profunds. There appears to be no way that the NDX could hold up much longer if present market action continues. I'll let you know if and when I initiate the position.