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 : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (23125)	5/13/2000 6:40:00 PM
From: Chris	Read Replies (1) \| Respond to of 42787

MARKET UPDATE After years of trading, I've seen market bottoms occuring on DIVERGENCE. This means that while PRICE is relatively unchanged, the underlying momentum indicator is at HIGHER LOW. This technique can be applied to RSI, MACD, and other indicators. In my charts, I've highlighted that same concept with my "secret indicator". Although a postive sign for the bulls, there are 2 important things: 1) FOMC Fed meeting on interest rates on tuesday which can "overrule" the technical picture, and 2) Upside Breakout confirmation in price must be achieved. Solely a divergence pattern is not enough. It must be confirmed with a price breakout. Currently, S/T portfolio in cash, and awaiting the market to decide. We will know the direction of the market within a couple days. I expect monday to fill the gap and trade flat, awaiting for the FOMC meeting. geocities.com (explains divergence graphically) geocities.com geocities.com (notice that using histograph version of the secret indicator, you can spot divergences easier compared to comp1.gif) My opinions only, and should not be a recommendation to buy or sell.