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

To: Paul Shread who wrote (27846)	8/17/2000 5:29:02 PM
From: John T.	Read Replies (1) \| Respond to of 42787

Paul, I recall reading that you count the first day of the rally as day 1. Therefore, 8/3 would have been day 1 and today is day 11. However, it really doesn't matter. William O'Neil has changed the rules on us. O'Neil now says that a follow-through day can come as late as 10 to 15 days. So, I'm wrong and you're right. From O'Neils website: How can you tell if the stock market is headed back up? Once in a declining phase, the market will always attempt to rally from some level. However, you can't tell on the first or second day of exuberance if it's going to soundly "follow through" and show some real gains. So, as an IBD-wise investor, you don't buy on the first or second day of a rally. You can afford to wait for a second confirmation that the market has really turned and a whole new major uptrend or bull market has begun. A follow-through will occur if the market average rallies a second time, showing overwhelming power by closing up more than 1% with the volume increasing from the prior day. When should I look for a "follow-through" confirmation? A strong follow-through day usually occurs between the fourth and seventh session of an attempted rally. Sometimes, it can be as late as the 10th or 15th day, but this usually shows the turn is not as powerful. Although every bull market has started with a follow-through, it doesn't guarantee the market will go higher. Some rallies will fail even after a follow-through day. Usually, the market turns lower on increasing volume within a few days. investors.com