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

To: donald sew who wrote (35583)	11/14/2000 6:47:28 PM
From: donald sew	Respond to of 42787

NOV 14 INDEX UPDATE --------------------------- Short-term technical readings: DOW - midrange SPX - midrange OEX - midrange NAZ - midrange NDX - midrange VIX - 30.10, midrange. CBOE PUT:CALL RATIO - .68 Per my short-term technicals the overall market is smack in the middle. As mentioned previously, it is common for my short-term technicals to get into the midrange right before an important announcement, whether that important announcement is the FED meeting or from the election recount mess. As of yesterday the MAX-PAIN was 740, but has declined to 730 as of today's close. The OEX closed at 729, so for the time being the OEX MAX-PAIN should not be a huge issue anymore. ez-pnf.com The MAX-PAIN for the QQQ also declined from 81 to 80, and the QQQ closed near 76. The ratio between the NDX and QQQ is 40:1, so the divergence in the QQQ MAX-PAIN is approximately 160 NDX points, so there is still some more upside pressure from the QQQ MAX-PAIN. iqauto.com With todays strong rally in the market, the upside pressure from the MAX-PAIN has been significantly reduced. Previously, I mentioned that I would be playing for a 1-2 day rally from the CLASS 1 BUY SIGNALs on FRI/MON. So for both my own and WEBSITE MUTUAL FUND ACCOUNT we are now hedged with only a slight LONG BIAS. I am not saying that the NAZ/NDX will sell off now, but I just like taking profits or protect my profits. The NAZ/NDX formed MORNING STAR DOJI's; however per the textbook it was an imperfect formation. I feel that it is still a valid formation and could be a sign of the bottom for the short and even possibly the Mid-term. That doesnt mean that the market will shoot up from here, but just that it will be a strong support if/when it gets retested. I am suspecting ZIG-ZAGs/relative flatness for the rest of this week, assuming that there is no change with tomorrows FOMC meeting. Not that I rely on the subjective alot, but the uncertainty of the election recount could keep the market relatively flat/ZIG-ZAGs for a while longer in light of the short-term technicals now in the midrange and that the MAX-PAIN is not that large of an issue now. Statistically, with declines of greater than 7% the probability of a retest is high. Some may say that this week was the retest. Thats possible but the NDX did produce a LOWER LOW by aproximately 250 points, which I feel is a bit too much to be considered an OVERSHOOT on a RETEST. On the bullish side, the "3-WHITE SOLDIERS" on the DOW is still holding, but as I mentioned yesterday teh "3-WHITE SOLDIERS on the BTK(BIOTECHS) was negated. The BTK did not participate with today's strong rally in the NAZ/NDX. If the BTK cannot catchup or worse if it sells off, the BTK could now become the leading indicator for the NAZ. I realise that the BTK has not been corresponding regularly with the NAZ, but if it sells off strongly, that may change. The BTK just looks weak, and could limit the upside in the NAZ/NDX if it cant catch up.