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

To: JRI who wrote (2388)	3/9/2001 9:12:06 AM
From: StockOperator	Read Replies (1) \| Respond to of 52237

Sure it's a possibility. But I will admit the two main components of my analysis is time and price. I would rather look at prices and the way things close to get a feel for things. Still something to keep an eye on.

To: JRI who wrote (2388)	3/9/2001 9:44:46 AM
From: donald sew	Read Replies (2) \| Respond to of 52237

JRI, Talking about DIVERGENCEs - take at look at the NAZ NEW HIGHs/LOWs: stockcharts.com Back in mid-DEC the NET NEW HIGHs-LOWs were nearing 900, but now with the the NAZ/NDX hitting new lows the NET NEW HIGHs-LOWs is only in the negative 100 region. As Michael pointed out, this type of divergence can continue with the NAZ/NDX going lower. However, I have noticed in the past that divergences in the NEW HIGHs-LOWs may be a leading indicator and can lead the market by months. An example, back in FEB/MAR of 1998 a significant negative divergence was starting, similar to the current situation but in reverse. However the market rallied strongly into JULY 20, 1998 before the strong correction ending OCT 1998. (EDIT) So in that example it lead the very bullish market at the time by 3-4 months. This doesnt help those who are playing the day moves or short-term moves, but if the NEW HIGHs-LOWs do not deteriorate significantly, the NEW HIGHs-LOWs could become a significant POSITIVE DIVERGENCE in the weeks/months ahead. EDIT: Of course, the NET NEW HIGHs-LOWs should not be used in this manner for short-term timing. So in no way am I saying that the NAZ/NDX cannot go lower.