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

To: Haim R. Branisteanu who wrote (27141)	8/8/2000 6:07:07 PM
From: donald sew	Respond to of 42787

AUG 8 INDEX UPDATE - CAUTION FLAG PARTIALLY REMOVED ------------------------------------------------------ DOW - PENDING CLASS 1 SELL SIGNAL SPX - PENDING CLASS 1 SELL SIGNAL OEX - PENDING CLASS 1 SELL SIGNAL NAZ - OVERBOUGHT NDX - OVERBOUGHT BKX - OVERBOUGHT, EVENING STAR VIX - 20.83, CLASS 1 BUY SIGNAL(inverse to market), SHOOTING STAR 5 DAY TRIN - 4.40 I am removing the CAUTION FLAG on the DOW and SPX, but not on the NAZ. Since I view the market from an averaging point of view of the DOW/SPX/NAZ, today was a flat to slightly up day. Yes I know that the DOW was up 109 points but the SPX was only up 3.49 and the NAZ was down. The SPX did form an IMPERFECT HANGING MAN at the CLOSE which is in line with my CLASS 1 SELL signal. Keep in mind that I got the CLASS 1 SELL signal yesterday, with the window for the short-term top until the next (today's) highs. However, the DOW is not in line with the CLASS 1 SELL SIGNAL, At the close the DOW gave a BIG WHITE DAY which is bullish, not bearish. This is the first hint that the DOW may be on the verge of a technical breakout to the upside. If the DOW closes up tomorrow and at the intraday highs, that would be a confirmation of a NEGATED CLASS 1 SIGNAL, which would be strongly bullish for the DOW, but suspect that it may be strongly bearish for the NAZ due to SECTOR ROTATION, where money may flow from the NAZ into the DOW. It was quite obvious that SECTOR ROTATION from the NAZ into the DOW occurred today with the DOW up 109 and the NAZ down 14. If this continues the NAZ/NDX could selloff strongly; therefore my CAUTION FLAG is still FLYING, but only for the NAZ/NDX. The NAZ and NDX appears to have started their reversal to the downside. As long as todays highs are not broken to the upside, I believe that the pullback may have started. Keep in mind that the stronger selling doesnt always occur immediately after a CLASS 1 SIGNAL, and could take a few days. If I am correct that the NAZ/NDX started its reversal, then that would be another technical negative since I never got a CLASS 1 SELL SIGNAL, only a CLASS 2 SELL. Reversals prior to a CLASS 1 SELL implies weakness, so if the overall market does start to sell off the NAZ/NDX could selloff stronger than other sectors. The DIAMOND FORMATION on the DOW is in jeopardy of being broken to the upside, which would be bullish for the DOW. In the past I had mention that depending on which junction point one uses, one could argue which one is the MAIN DOWNWARD TRENDLINE for the DIAMOND. The 2 possibiities for that trendline are at approximately 11000 or 10900 for tomorrow. So the DOW did break below the lower possibility already. A significant sustained break above 11,000 would be bullish. If 11000 is broken to the upside, most would say that the DIAMOND would be negated; however I would not agree with that immediately. As mentioned previously, it could just mean that the right side of the DIAMOND is being extended further out, which did occur with the rising trendline previously. If the DOW breaks 11000 and just hangs around 11000, then I would suspect that it is just extending the DIAMOND further out and that the DIAMOND was not yet negated. Previously I mentioned that a SHOOTING STARon the VIX normally produced a reversal in 1-2 days. 2 Days ago there was a SHOOTING STAR, and today there was another SHOOTING STAR. Previously, I did not have a CLASS 1 SIGNAL on the VIX, but did get the CLASS 1 today. So a SHOOTING STAR plus the CLASS 1 are lining up nicely for the reversal to the downside to start tomorrow. Keep in mind that we could have the possibility of SECTOR ROTATION also.

To: Haim R. Branisteanu who wrote (27141)	8/8/2000 6:09:02 PM
From: Square_Dealings	Respond to of 42787

Haim, are we supposed to be reading financial statements now? :) But they beat estimates didnt they? This report looks about as good as the last HWP report where they made most of their money from interest income. But of course HWP is hot now since its a "safe" play. Today's API report showed further reductions in oil and gas stocks, but there's no inflation :) M.

To: Haim R. Branisteanu who wrote (27141)	8/8/2000 7:23:08 PM
From: Peace	Read Replies (1) \| Respond to of 42787

Haim, You statement is incorrect. If you exclude Purchased in-process R&D (this comes from acquisitions) from the current and 1999 corresponding quarter Operating income increased from 772 to 1283, a very impressive 66% increase. That's the number investors will look at. Peace