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

To: Chris who wrote (26909)	8/7/2000 10:49:59 AM
From: Robert Graham	Respond to of 42787

Interesting...very interesting indeed! There was a setup I would normally take to the downside. Instead the indicators you and I have been developing gave me a buy signal. This happened after price put in its initial opening range, retested the low of that range, and broke out on the upside. A bear flag was put in outside of the opening range. One the smaller time frame, the momentum indicator had earlier given its buy signal. The pullback indicator here given what I talked about with you earlier was apparently giving a buy signal for a pullback. The momentum indicator on the larger time frame also had given its buy signal earlier. This meets our criteria for an early buy signal on the momentum indicator. So I took a paper trade...which worked. Price kept moving up. It has had one chance already to move down from here, which was invalidated. It is at another such juncture. Price action appears to be trading "weak" but still continuing up. Now a small test of top has been put in. Lets see what happens next! :-) Looking at the market stat page of mine, I see +55 on the COMPX, +66 on the NDX, +23 on the Comp Tech index, +23 on the SOX, but only about +7 on the DOT. I do not see the SOX as a good leader for a rally. I have seen SOX work best when it takes over leadership for an interim period of time until preexisting leadership retakes the lead. This may be due to the cyclic nature of SOX as recently mentioned by Donald Sew which stirred up some thoughts in my head about this. Now the big question is: do we have the beginnings of a trending day? We shall see after the first pullback which looks like it may be happening now. update That pullback did not turn out. But I think this is a maret perating on the 3-min time frame. So This second attempt thatis occurring now may have more promise. Divergence on the 7-min Stochs. Now price has pulled back again where a "reverse" style of bear flag has formed. This can lead to strong moves. But if this is invalidated too, then the maket is talking to me. Bob Graham PS: Remember last week we had that day which was both a strong momentum day and a type of reversal day. So after some backfilling, I was expecting the trend to continue.