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

To: Square_Dealings who wrote (29397)	9/9/2000 7:42:46 AM
From: donald sew	Read Replies (1) \| Respond to of 42787

Michael, >>>>> The problem is no one has a clue which way the market is going <<<<<< Frankly, I agree with you. Last week those who were bearish saw the market move higher than expected, then this week when so many were bullish expecting a strong after LABOR DAY rally, the NAZ drops significantly. I suspect more downside in SEPT/OCT, but Im not sure. What makes this market more difficult to read is the issue of SECTOR ROTATION. In the past, when one of the major indices moves the others follow within a short period of time. With SECTOR ROTATION there is another variable and that once a major index moves there is now the possibility that another major index will move in the opposite direction.

To: Square_Dealings who wrote (29397)	9/9/2000 11:25:11 AM
From: eichler	Read Replies (1) \| Respond to of 42787

M. <The problem is no one has a clue which way the market is going> I agree, it often appears this way. However, the following of daily charts and indicators is to me akin to sailing a ship perhaps by the stars. The point is you may not know exactly where you are but at least you're going in the right direction. Right now, frankly, the daily charts for the $compx and $dji have me worried about further upside action at least short term (maybe couple weeks). Using stochastics, ADX, and trendlines, it appears to me that both averages are heading or are in danger of heading south for the forseeable future. ADX and Stochastic lines are all heading in the wrong direction. The $compx trendline has been broken and should test fib. retracement levels. The $dji trendline was already adjusted from a steep incline 8/1-8/14 to a noticeably lesser angle 8/16-9/6. It now appears in danger of breaking to the downside. From the look of both daily charts, I would say that 9/1 was the top in the $compx most recent uptrend and 9/6 the likely top in the $dji current uptrend. Disclaimer - This is only IMO. I admittedly discount all fundamental considerations (Election year, VIX, interest rates, yada yada, everything). I only consider the charts themselves and position myself in the direction of the current trend. Currently I am cash and short. I make no prediction as to the duration of the current situation but when stochastics, adx and trendlines reverse to the upside, so will I. Good trading, Eichler P.S. I use I.Q. Charts... primitive perhaps compared to the cool stuff alot of you use, but it gets the job done. BTW...Did I misread in the last couple days Beara calling for down move? That guy in uncanny predicting tops & bottoms!