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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 (25084)	7/9/2000 11:32:39 AM
From: dennis michael patterson	Respond to of 42787

This guy is always worth reading: NICK'S PICKS A Decision Point Publication By TraderNick July 8, 2000 Market Overview: A generally soothing employment report triggered a rally on Friday, but the question of whether the rally was for real seemed to linger in the ozone. Market internals looked good for the most part, and chart indicators are mixed with a bullish bias, but pundit commentary retained a sense of dubiousness. And that is probably a bullish sign as well. Things aren't perfect by any means. After hitting a ST Fibonacci time line, the market-contrary Volatility Index (VIX) had a big move all right, but the spike was to the downside rather than the upside. This puts VIX right back into oversold territory at the bottom of its ST regression channel. And the Nasdaq is back at the top of its range, where resistance is thick around the 4075 level. The scary thing about the Nasdaq chart is the huge gap between 3585 and 3730, left there in the first week of June. If it were to be filled, the devastation would be enormous. But by and large, the market index charts are saying that we don't have to dial 911 just yet. In spite of the strong week, neither the Dow, nor the S&P, nor even the Naz are formally overbought at current levels, and both the daily and weekly indicators continue to move up. Friday's pop even triggered daily DMI crossover buy signals on all three indexes. The Dow remains the only index still below its 200 DMA, but it's giving it the old college try. Individual stocks can, and will, still get killed by subpar earnings announcements, of course, but the early warning season will be giving way to regular earnings in the days ahead, and the majority are expected to be in line with or above expectations. Last quarter, stocks ran up ahead of earnings then sold off on the news. Even if such were to be the case this time around, it should still mean at least a week or two of decent market behavior. But probably the best way to play it is to forego making showy, macro market directional bets and simply do your thing on a chart by chart basis. Stock picking is the one thing that never goes out of style.