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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (22925)	4/26/2000 8:58:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

I want to talk about time frame here. This is in reference to the ongoing discussion here and elsewhere about market direction. First, for the time frame I trade in which is the 5-min chart, I also think that the market can continue its rally from here. Does this mean this rally has legs? Does this mean there cannot be a later resumption of the sell off some time in the future? Anything that can be described in days is too long term for me and simply irrelevant. The 45-min and the 135-min charts I consider long term for my purposes. There are allot of 5-min bars between today and tomarrow or the next day. Now for short term position traders, this is a different story. We had three consecutive day sell off on the heels of previous selling that amounted to substantial losses in the NASDAQ. I think today will be more revealing than yesterday as to the short term direction of the market with regards to position trading, not day trading. I think we were dealing with an oversold market. And the markets response to an upcoming pullback will also be important, which we saw on an intraday basis yesterday with the market closing at its high. Also where and how the market bounced with respect to support on the daily and weekly charts can be indicative. Now we just need price to confirm what some are already anticipating in terms of follow through for some and for other traders how the market responds to a pullback on the daily chart. As far as day trading the market goes, yesterday's open said it all. I was anticipating a pullback before a move up. The sell off Friday along with where the market rebounded set the context. When the pullback did not happen, I started immediately to think of a trending market for my intraday trading purposes. At that point I simply did not care about what will happen to the market tomorrow or the next day. As far as a bottom is concerned, I see one on the 45-min time frame in the SPOO. Then the market pulled back to support, not a retest of the previous low. Then the market rallied into the close. So while some day traders wait for some signal <sarcasm on> from the gods <sarcasm off>, other day traders have been making money. :-) Now it has been a different story for the short term position player who many are on this thread. Of course, JIMHO. Good trading to everyone! :-) Bob Graham