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 : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (25779)	4/4/2000 10:56:00 AM
From: Ms. X	Read Replies (1) \| Respond to of 63513

Hi Rich, You hit on a very important source for determining strength in a sector. You are looking at the DWA Technical Indicator report (box seats only) which leaves little to guessing where the money is going. Compare the OPTI and OTC to the Banking sector for instance... Huge amounts of money have been coming out of computers and other tech sectors while Finance, Banking, Chemicals, Forest and Paper, oil, restaurants, retailing - all a majority of Dow stocks, have been gaining strength. Here again today we are seeing a continuation of that trend. Until we see some of those O's turn into X's the money will continue into non-tech like sectors. For those long term into techs you have to judge the support levels on your stocks when the market goes against them. The Nasdaq yesterday broke major support on the 50 box chart and looks horrible. I thought it would hold that support but... MSFT really threw things for a loop. The MSFT chart did pull right down to the BSL and major support, which is good for them if they can hold it. I'm in the QQQ's for the Nasdaq because the chart has been holding up well. Yesterday it broke a triple bottom however and I'll be watching carefully to make sure it holds. I wouldn't play individual stocks at this time on the Nasdaq. Back to the technical indicators. These are like putting a sharp tip on your trading knife. The indicators tell you the direction of the market, the sectors tell you the risk level and the DWA technicals tell you the minute maneuverings of those above. There are five charts per sector and indicator to look at. BP - the Bullish Percent which you all see. MO - the momentum PT - the positive trend RSP - the relative strength positive RSX - the relative strength column TW - the ten week. You had mentioned the semi's. They have mostly O's with these charts and only a couple of X's in this order: BP - X MO - O PT - O RSP - X RSX - O PT - O Just by looking at this and no other information you can see that it is negative by majority. You wouldn't want you money in this sector. Of course there are percent levels with these as well which is important. As with the sector BP charts if it is at a high level and reverses down you would consider that a big warning. At least the semi's have come down to a low level but they haven't gotten enough support yet to reverse. The TW and MO, while at low levels, are still extremely negative. EDIT: On the QQQ's the support was broken and I'm exiting on a bounce.