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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (5220)	1/7/2001 9:51:36 AM
From: SBerglowe	Respond to of 8925

OJ- this was sent to me by 'astrofriend' Arch Crawford. It is Jerry Favor's analysis. BTW Crawford is also wildly bullish here: I hope Mr. Favors doesnt mind my reprinting his analysis. Subject: Fw: Hotline Update - Friday, January 5, 2001 12:30 p.m. Date: Fri, 5 Jan 2001 08:08:30 -0500 To: "arch crawford" <astromoney@worldnet.att.net> ----- Original Message ----- From: <info@jerryfavors.com> To: <update@jerryfavors.com> Sent: Friday, January 05, 2001 12:01 PM Subject: Hotline Update - Friday, January 5, 2001 12:30 p.m. > Jerry Favors Analysis - Friday, January 5, 2001 12:30 P.M. > > For the most part the Dow has followed our forecast for > this week quite well. We looked for a low near January 2, plus > or minus 1 day and then a short-term high near January 4, plus > or minus 1 day. We then looked for a decline into a short- > term low near Monday, January 8, plus or minus 1 day. The Dow > in fact reached a print low of 10581 on January 3, and then > rose 447 points to a print high of 11028 on January 4. We > have since fallen over 340 points from that high to today's > low so far. > The 3-Day Chart has turned down today, and that is a short- > term negative signal. However as we have tried to stress, that > is not any sort of sell signal on an intermediate-term basis. > If the Cycles are correct we should see a low by Monday or > Tuesday at the lastest, if we do not see a low today. > On the positive side, the 10-Day Moving Average of Advances > Minus Declines yesterday closed at 512.9. That is the > highest, most bullish reading since 11/6/98. This suggests > that higher prices should be seen over the coming weeks. The > 10-Day Moving Average of the Advance Decline Line rose above > the 50-Day Moving Average, which is normally intermediate-term > bullish. The 5-Day Moving Average of New Highs rose to 276 on > 12/28/00. That was the highest reading there since 3/26/98, 33 > months ago. Most of you know how much weight we place on the 5- > Day Advancing Volume. The 5-Day Advancing Volume reached > 728.80 yesterday. That is the strongest reading in this > indicator since March 21 of last year. This suggests that > higher prices should follow this correction. If we include > the even more important signals given by our Gann Monthly > Chart and our Gann Quarterly Chart this week, we must say > there are strong reasons to look for higher prices after this > correction runs its course. A decline below 10367 intraday in > the Dow and 2251 in the Nasdaq could alter our position from > here, since that would give sell signals off the Weekly > Charts. However as long as we hold above those levels we > would remain bullish. > As long as we do not see any reason to change our mind, > we intend to raise long positions to 70% long by Monday or > Tuesday. But let's see how we close today first. Any rally > above this week's print high of 11028 in the Dow would now > give a very bullish signal short term. We will give you a > more detailed update on Sunday evening at 7 pm. >