Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Shread who wrote (34623)	11/2/2000 2:30:09 PM
From: adcpres	Read Replies (1) \| Respond to of 42787

Paul: I agree that the NDX has a cleaner pattern but both the COMP and NDX have a very distinctive wedge beginning last Thrusday. Consider the COMP for the moment. The top trend line is easy to draw whereby it intersects the close today around 3440(doing this on my screen not hardcopy). However, as Don mentioned, the bottom depends on the points picked(Monday's bottom poses some difficulty as a choice). If you choose last Thursday's bottom along with yesterday's, the bottom trend line gives approx. 3370 for the lower close today. If you choose Monday's bottom along with last Thursday's you get a different slope with a lower close boundary of 3300. What I tend to do in situations like this is try to guess the correct slope and adjust the line up or down to encompass the peaks or dips that fall out of range. So in this case I would fix the slope using the dips from last Thursday and this Wednesday and then translate the line downward so it touches the dip on Monday which would give a lower close boundary for today at around 3350. This procedure moves the apex out further in time. I am not sure if this is any better as I have not been charting very long. Have you any thoughts on this? In any case we are quickly approaching the apex and entering a very narrow trading range. (things have not moved much from the opening hour) A break is imminent but which way? Of coarse its a bearish wedge predicting a break down BUT as Don pointed out this market is "wacky" if not spooky(Halloween) and it could break up. This really does seem like the calm before the storm. Is the market setting us up to go long only to wack us hard? I still cannot overlook to potential for more bad news interspersed with tidbits of good news that will continue the gyrations. I have been into cash at the end of the day too nervous to hold positions overnight for "fear" of surprise announcements that could wack us on the open. It did not work today as everything I blew out of yesterday, jumped up on the open today and stayed there -- very frustrating. So it basically comes down to this -- can QCOM rock the market with its earning's report tonight good or bad?? Any thoughts on this?? Can the market ignore QCOM? I tend to think not. I do not feel the narrow trading range will extend into tomorrow even though the apex of the wedge is a day or two away. All hell is going to break loose very very soon. This does not feel good for establishing confidence in which way to play. I have already trashed my account enough in the past two weeks by guessing wrong. I was left behind by MSFT's positive news and subsequent move up(cashed out before their earnings). GH