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

To: Paul Shread who wrote (31350)	9/27/2000 10:18:49 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 42787

Paul, thanks for the link. "Tight Range. Continue to use 10,700 as the new fulcrum on this index. Watch for the big move. Recap from yesterday's commentary, "So, we are clearly set up for a major decline here. If you do go short, I would definitely be prepared to get out the second this thing turns back around and heads up through 10,700. Why? If it's going to tank, I think it's going to be fast and furious - something akin to a panic selloff. So, if it doesn't do that, you don't want to be short in the face of a recovery rally. I think 10,700 is the key level to use in this tactic...." Well, today was interesting. No, it was boring. Sure, the NASDAQ pushed down as we expected, so did the OEX a tad, along with the Dow, but nothing big - no major breakdown today. That is interesting. It would seem to me if the market were going to fail here, it would have broken today, but it didn't. So, what does this mean? Let's start our analysis with the 60 Minute, as we typically do. You can see that we did form a bearish consolidation, which I have marked. However, we are holding at a fairly important support level of 10,600, in a tight range. Now, this tight range does itself form a consolidation in the smaller timeframes, and it implies a drop of about 250 points is coming. But clearly, it held on throughout the day. The NASDAQ is now flirting with 3,600 - a key level there as well. And the OEX, in lock step with the other two, is just below that important 760 level. ** Now, that is interesting! You don't often see all three indexes whimpering in the corner like this. These tight ranges imply an explosive move is likely to happen, and it will probably come tomorrow. Most likely direction is still down, but if you are watching the market and see a strong move up through our key levels of Dow 10,700; NAS 3,700; and OEX 760, you have very high odds of a bottom being discovered. Close shorts and go long - WITH stops at the same levels (yes, we could get whipsawed). The way to bet is that the market is going to trade lower, simply because of the bearish patterns we talked about yesterday (the consolidation, the diamond, and so on), and because the OEX and NASDAQ are below critical support. But, I've seen it happen before at very specific junctures. Just when everyone thinks the market is going into the can, it turns right around. That's why I like using these key levels around support. You almost can't lose. As long as you keep a close watch and get on the right side - it can't stay there for long. So, my advice for tomorrow's market is to sit back and see which way the pendulums swing from these key levels. As we pull away to the downside, increase shorts. If we push through the levels to the upside, exit Shorts and start getting Long. Just look at that Daily Chart. We are right in the center of conflict. It has to go somewhere! Thanks for listening and Good Luck in Your Trading!" Ed Downs signalwatch.com

To: Paul Shread who wrote (31350)	9/28/2000 7:53:50 AM
From: dennis michael patterson	Read Replies (1) \| Respond to of 42787

Gee, Paul, I don't think he says that at all. He seems to think there is an equal chance of a move up. >>but if you are watching the market and see a strong move up through our key levels of Dow 10,700; NAS 3,700; and OEX 760, you have very high odds of a bottom being discovered. Close shorts and go long - WITH stops at the same levels (yes, we could get whipsawed). <<<