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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: briskit who wrote (58168)	8/13/2000 11:39:24 AM
From: Les H	Respond to of 99985

I've noticed the whole year that the market has been in an ongoing rotation and the percent of stocks and groups above the 200-day MA has been in a range of 40-50 percent. I normally only drop stocks when they stick below 3 bucks or when they are being merged/acquired. Currently, the utilities, bank/financial, and building & construction have been strong. I separated out the Conglomerates or Industrial stocks in a separate which are strong also. They comprise the ^NDA (NYSE Industrial) and consist of Tyco, GE, American Standard, etc. I used to use the IBD ABCDE counts for breadth but stopped since they drop stocks below $ 10 or $ 12 and gives an upward bias. A lot of the industries have a majority of stocks trashed below $ 15. It's been a weak and narrow recovery since the August low as the number of stocks above the 10- and 21- EMAs haven't approached 70-80 percent as yet. I had a potential indication of a reversal when the universe of stocks had over 84 percent buys in the US column two weeks ago. It's now at 52 and normally will move up to near 80 percent sells as the market moves up to signal another intermediate-term top.