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

To: dennis michael patterson who wrote (25058)	7/8/2000 3:30:41 PM
From: John T.	Read Replies (3) \| Respond to of 42787

I'm short term bullish for the next week or so. I see too many indications that this market wants to move up. I agree that a short term pull back from here is likely. At about 3:30 p.m. ET, my short term indicators for INDU, OEX, SPX, COMPQ and NDX all peaked and turned down. They had reached levels which typically indicate at least a short term trend change. I believe the character of this pull back (assuming there is an immediate pull back on Monday) is very important. If the market declines Monday with evidence of heavy distribution, then I'll turn bearish. However, if the market closes slightly down or flat Monday and then continues to rally Tuesday, I'll remain bullish. I agree that the NASDAQ breath deteriorated materially on Friday. In fact, the NASDAQ A/D line peaked at about 10:00 a.m. and trended down for the rest of the day. However, the NYSE A/D line was up strong all day and trended up into the close. I'll try to post a 5-minute chart showing the NYSE and NASDAQ A/D lines later. Right now the upload page from my ISP is down. I've only been a subscriber to Favors' advisory service for a few weeks, so I really don't have enough experience with him to form an opinion. You mentioned the recent poor performance of big cap tech leaders like CSCO and SUNW. These stocks have been forming bases in preparation for the next move up. Do you realize that both CSCO and SUNW are just about a day away from giving a MACD buy signal on their daily charts. If they are up next week, they will have MACD buy signals on their weekly charts. To me, the CSCO and SUNW charts look potentially bullish. I see potential inverse head and shoulders patterns in both charts. I can't post charts right now, but here are the coordinates. On CSCO, the left shoulder, head and right shoulder are at the lows on 4/14, 5/24 and 6/30. For Monday, the CSCO neckline is at 68 11/16. On SUNW, the left shoulder, head and right shoulder are at the lows on 4/14, 5/24 and 7/6. The SUNW neckline is at about 98 3/8. Alternatively, SUNW's chart pattern could be described as a cup with a handle. The left side of the cup is at the high of 3/28 and the right side of the cup is at the high of 6/20. The handle is a horizontal line at 98 1/4 drawn to the right of the 6/20 high. The pivot point or upside buy point would be at 98 3/8. One reason why I am short term bullish is that I see so many stocks setting up in bullish formations, such as inverse head and shoulders, cup with a handle, flat base, etc. Many of these stocks have already broken out. (I can give you a list of these stocks, if you like, after I finish my weekend chart review.) Anyway, that's my 2 cents. Let's see what Monday brings.