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

To: James Strauss who wrote (55235)	6/25/2000 3:07:00 PM
From: UnBelievable	Read Replies (1) \| Respond to of 99985

Oversold? Based on What? "Both the Fast Stochastic and Slow Stochastic oscillators are used by market technicians as a timing indicator for signals of market reversal. The Fast Stochastic will provide more signals than the Slow Stochastic, although some analysts prefer the Slow Stochastic, believing it is less prone to whipsaws. The Stochastic oscillator compares where a security's price has closed relative to its price range over a specifically identified period of time. George Lane, who developed this indicator, theorized that in an upwardly-trending market, prices tend to close near their high, and in a downwardly-trending market, prices tend to close near their low. Further, as an upward trend matures, price tends to close further away from its high, and as a downward trend matures, price tends to close away from its low. Lane's theory is that these are the conditions which indicate the beginning of a trend reversal. The Stochastic indicator is plotted as two lines, the %D line and the %K line, with values ranging from 0 to 100. Readings above 80 are strong and could indicate that price is closing near its high. Readings below 20 are strong and could indicate that price is closing near its low. For an excellent discussion of the Stochastic indicators, please refer to John Murphy's Technical Analysis of the Futures Markets (New York: New York Institute of Finance, 1986)."

To: James Strauss who wrote (55235)	6/25/2000 3:32:00 PM
From: eichler	Read Replies (1) \| Respond to of 99985

James, Sorry, I just don't see it. My IQ charts doesn't recognize FSTCX and the silicon investor charts won't give up stochastics data for that symbol... However, looking at SI,s chart, I see we just had a hard run-up from around 65 to over 80. The price cut through the MA's like a knife through butter and the fast MA crossed the slow MA going up. Now, the fast MA is threatening to cross to the downside, and the RSI is falling as well. Frankly, I see nothing on the chart that makes me want to rush and grab the telecoms. As far as "oversold" , besides not being able to see on the chart with indicators this condition, I would point out from my experience, there is no rule about oversold stocks not becoming even more oversold! Since your chart shows nothing to state your case, I'm afraid your assumption could be dangerous to ones portfolio and I might suggest a bit more study before jumping in. BTW, specific stock charts have always been more helpful than sector charts...was there a specific issue you had in mind? Good trading. Eichler

To: James Strauss who wrote (55235)	6/25/2000 6:59:00 PM
From: NucTrader	Read Replies (1) \| Respond to of 99985

>>A good time to start some buying...<< Unless they're headed for a double bottom around 65 on your graph?

To: James Strauss who wrote (55235)	6/25/2000 10:55:00 PM
From: el paradisio	Read Replies (2) \| Respond to of 99985

James, Telecoms are in accumulation mode and likely going up from here. 207.61.23.98 WCOM,likely double bottom.If 37 9/16 will not hold,a strong support at 33-35.With predicted growth,next year P/E will be 15. 207.61.23.98 INDU,if 10,400 will not hold and will drop to 10,250... we are forming a clear descending triangle,which likely will be resolved to the downside.Or,we are on the bottom of inv.H&S formation(I think, inv.H&S). siliconinvestor.com Here is candle analysis: Message 13939099 As concern the interest rates,A.G will likely not raise them now.Here is an excellent post from Haim, explaining why. Message 13941642 What is my concern:The market breadth and A-D line on NYA. NYA has almost 40% stocks "interest sensitive". stockcharts.com As you see,this line suddenly dropped in the last 3 weeks. If this line will not improve soon....we may have some problems with the further rallies. For the next week,I expect Compx going up to at least 4000 and Indu holding 10,400-10,525 area. el