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

To: Square_Dealings who wrote (51213)	5/19/2000 1:51:00 AM
From: Michael Watkins	Read Replies (1) \| Respond to of 99985

Michael, Well symmetrical triangles are 'supposed' to resolve in the direction of the original trend, but frankly over the past year it seems that every Nasdaq stock gets itself in numerous triangles and in all time frames (intraday, daily etc) and the initial moves are not always what you might expect. In fact, there's a percentage play in going opposite the first move and I sometimes do take these trades on an intraday basis. I think the only thing we can count on with such triangles is that they truly are an area of consolidation and many players are making their bets and we need to be prepared for the breakout and also ready to react if its false... Thinking diabolically, I will not at all be surprised if the Nadaq rallies unexpectedly one of these days, but I will also be following underneath as it progresses with a big fat short entry. Heck, I might even be long for a spell... although I am more relucant these days than ever to be long (although REITS have treated me nicely lately). Many folks have had a lot of time to get short and from time to time we will see some spectacular if short lived rallies. Right now I want to see 3367 on COMPX broken.. then it will get even more interesting I think.