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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Demosthenes who wrote (13971)	5/27/2000 7:43:00 PM
From: Mr. BSL	Read Replies (1) \| Respond to of 15132

Positive Divergence? . Good question. I heard Bob use that term last month. I thought he might be referring to hi/lo or a/d numbers. Probably not that simple or he would have said so. I heard second hand that he has a buy in on the QQQ's in the 75 to 78 range for a bear market rally. I also heard that last week's closing low was a prerequisite. (a failed retest is good? ). FWIW, I'll be waiting for a follow through day before picking up dimes in front of this bulldozer! We are certainly due for a rally. Dick

To: Demosthenes who wrote (13971)	5/27/2000 8:03:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

D: A positive divergence is when the market shows better internals on a retest (or a slight close below) than on the reaction low with lower volume. So, for example, there were more advances than declines on this Tuesday than on April 14th (1,265 vs 500). Other things to compare would be new lows and new highs between Tuesday and the reaction low. Such positive divergences suggest that the selling has been completed short term and the market is ready to rally.