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Strategies & Market Trends : Quarter to Quarter Aggressive Growth Stocks -- Ignore unavailable to you. Want to Upgrade?

To: stomper who wrote (1138)	12/5/2000 10:39:02 PM
From: stomper	Respond to of 6932

Always liked Favors (from the MDD thread): Jerry Favors Analysis - Tuesday, Dec. 5, 2000 8 p.m. At the highs today the Dow was up 357 points, and closed up 338 points. The Nasdaq closed up 274 points, near its high for the day. On last evening's update we stated the following," Last evening we told you that any rally above 10758 intraday in the Dow this week would give a bullish signal off the Gann Weekly Chart. Today the Dow reached an intraday high of 10695, getting fairly close to 10758 intraday, but not exceeding it quite yet. On a print basis the Dow needs to exceed 10647 to give a bullish signal, but that intraday number of 10758 is the more important of the two." The Dow exceeded 10647 on a print basis near 9:45 EST this morning and as expected, also exceeded 10758 intraday. This generated a bullish signal off our Gann Weekly Chart. Today was an exceptional day for the market. Not only were the gains superb but the breadth showed a very strong 2.45 to 1 positive ratio. There are numerous aspects of the last few days action that we find encouraging. For instance, the Dow did not begin to show any real strength until yesterday, and the Nasdaq has been extremely weak. However the 5-Day Advancing Volume, one of our favorite indicators, has been rising higher and higher every day for the last 7 days. This is very strong action and suggests this rally probably has further to go, even if we begin a correction tomorrow. The MACD is now on a buy signal, which is bullish. The Dow closed above its 89-Day Moving Average, which is a positive signal. The Cycles and the Bradley did a good job at forecasting the November 30 low. The Cycles call for a short term high near December 7, plus or minus 1 day, and then a brief pullback for a couple of days. From there the Cycles call for a further rise into December 19, plus or minus 1 day. The Bradley calls for a short term high near December 13, plus or minus 2 trading days. Now there are a few short term factors which may give us some trouble. We have stated how important the 21-Day 3 1/2% Exponential Trading Band is in our work. The Dow is normally near a low when prices fall down near or below the bottom of this band, and we are normally near at least a short term high when prices rally up near or just above the top of this band. For instance the bottom of the band on Nov. 30 was 10205. The intraday low for the correction off the November highs was exactly 10205 on November 30. We have not broken that level since then. Now that kind of precision is by no mean normal. Normally there is a zone of support near or just below the bottom of the band and a zone of resistance just above the top of the band. The top of the band today was 10975. We moved just above the top of the band today, so we are near a short term resistance zone. The 5-Day RSI on the Dow closed at 72.57,now into the overbought zone above 70. However keep in mind that that is just a mild overbought reading so far, not one that would overly concern us. It would not surprise us if we began some sort of pullback at some point tomorrow. In fact we would expect it. For now though, we remain bullish. Only a decline below the Nov. 30 low of 10205 intraday would alter our bullish position. This position includes the Nasdaq. The Nasdaq gave a short term bullish signal today when it exceeded 2750. The next important resistance is 2999,and a rise above that level would signal higher prices ahead, at least short term. For now we want you to hold current positions until we give you new instructions to either raise those long positions or lower them.

To: stomper who wrote (1138)	12/5/2000 10:40:11 PM
From: jjetstream	Respond to of 6932

Rats..I knew you were going to do that......grrrrr