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

To: HairBall who wrote (62453)	11/14/2000 3:23:37 PM
From: Casaubon	Read Replies (1) \| Respond to of 99985

I'm not an e-waver but someone posted an e-wave analysis of the compx in early may, I believe. I printed that chart because I liked the count. The chart showed we were to have an eventual wave 3 (or C) target of 2897. Yesterday, we touched 2860 on that index and finished the day with a bearish overthrow, just below an "important" psychological support line (on the NDX). The put/call ratio was heading into bullish territory with the VIX spiking. We are heading into the seasonally bullish period and the economy is still humming. Bush will be elected and probably institute some tax cuts as well as enact some legislation to allow some soc. security funds to be invested in the stock market. The Fed will probably be forced to stay its hand or drive the economy into a serious recession. For these reasons, I am inclined to believe we shall have a sizable rally from here.

To: HairBall who wrote (62453)	11/15/2000 1:15:03 AM
From: Smooth Drive	Read Replies (1) \| Respond to of 99985

Hello LG, No, not zigzag. The basics I took from Robert Krausz when he first described his new Gann Swing charts and lines in TAofS&C store.yahoo.com Right now I'm maintaining three styles of swingline charts and back testing by hand. I'm using the method he teaches and two bastard children. But -- they all read the same. The weekly chart sets the major trend of a stock of index. The daily is used for actual buying and selling within the major trend. A chart is in positive trend when a peak surpasses the previous peak and negative trend when a valley surpasses the previous valley. I change colors to better see it. One of the things I like about using swing lines is channel construction is very easy. Channel breaks often come a few days (or weeks) before a trend change. For me it's a great tool because it provides three major areas to either buy or short. Sort of the best of all worlds in a pullback swing style and a breakout style. For instance, you can can go long when the trend is postive and 1) you reverse up from a valley (and the close is above a 3 day moving average of the previous highs); or 2)when you surpass a previous peak; or 3) when surpassing a previous peak and going from a negative to a positive trend. Reverse the above for shorting. Oh! Here's one of my dear sweet children now<g>. The weekly S&P is in a negative trend. The daily did a head bob and then folded back down, breaking the channel and once again having a negative trend. But, these quick signals on the daily often signal a bottom (I've hand charted the indexes back many years). swinglines.homestead.com Take care, Eric