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

To: adcpres who wrote (5456)	4/10/2001 1:04:51 PM
From: Michael Watkins	Respond to of 52237

adcpres, Each night on TV we hear a dozen different reasons for what happened during the day; some may have actual influence on what is happening, some reasons are just fluff to fill space. For weeks and weeks the market has not been able to hold on to even a couple of updays in a row. Sentiment was about as bad as we have seen, and even the long term bullish folks have been thinking 'oh my, when will this stop. when is it going to crash?' There was a fairly significant test of a swing low last week on Nasdaq, and constructive action on SPX. Trading futures intraday, it was becoming clear that the market was slowing down. A gap up, and the larger time frame shorts start to consider their options. TV moans about low volume, yet price is what really matters and bullish folks (and objective chartists) note that price "has stopped moving down" - not the same thing as price moving up. The conjunction of support forming intraday; near by tests; sustained selling for many weeks; some stocks holding up or even reporting better than forcast; - its all coming together right here. I will never say that this is "the" bottom. Undoubtely something will come up to test confidence in the future. However the conditions are ripe for a move that could last many days, perhaps even 2-4 weeks. 500 or more Nasdaq points; 100 or more SPX. But, lets just trade one day at a time. I've already moved stops up on all my position longs. I'd rather be stopped out and then look for a retracement to get in, than give up this short term albeit healthy profit. One more thing, the move may continue up with people continuing to short it. Its the way of the world...