Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (2541)	8/1/2000 12:14:20 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 33421

Does anyone have yesterday's (Monday) NYSE advance decline figures? Thanks in advance... GZ

To: Chris who wrote (2541)	8/2/2000 1:26:24 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

THE US DOllAR cash index has completed a .618 retracement of the 5-19-00 to 6-7-00 decline. geocities.com it has taken the form of a double zig zag upward correction in price. we have gone a bit above the .618 retracement level, but it appears a moderate short position should be taken. we do have a momentum divergence sell signal that has kicked in on the 14 day RSI geocities.com this adds a bit of support to the shorting idea. the Euro has also completed a .618 retracement of it's rally off of it's historic lows of .8870 of may 4th and 19th. geocities.com It's not obvious what the catalyst is that will start to lean on the dollar, possibly the reversal of the energy complex to higher prices, couple with the rate rise by the RB of Australia and the coming rate hike out of the BOE. ----------- 11:01 ET $-¥: 109.10 BOE may hike tomorrow : The odds for a hike rate hike tomorrow are fairly evenly balanced and though we go with the market consensus in expecting a move next month, it would not take much to sway the decision. The strength of Q2 GDP and sterling’s 8% decline since the early May peak give the hawks slightly more ammunition than when they met last. That said, sterling/euro has already corrected nearly 40% and looks set to continue higher in the event of another rate move. This will inevitably hurt the manufacturing sector which despite some recent improvement continues to look in fairly fragile shape. With the euro still looking weak sterling/euro has just recently posted major new highs for the corrective move (from the mid June lows of 1.5584) having seen 1.6350. Several weeks ago we pointed out a completed basing pattern suggesting gains to the 1.6450 area were likely in the long term. Even in the event the BOE do not move tomorrow, it's still likely they will hike in September so ultimately this objective remains valid. In the event of no move tomorrow we would look to regain long exposure on the dip to 1.61 trend support or alternatively if they do move - take profits on the approach of our 1.6450 target.