Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Shread who wrote (6129)	4/20/2001 3:45:44 PM
From: Jack T. Pearson	Read Replies (1) \| Respond to of 52237

I've just about convinced myself that todays close is bullish. I had expected a much stronger pullback in the NDX and COMPX based on the big moves this week. Is market still oversold?

To: Paul Shread who wrote (6129)	4/20/2001 11:29:51 PM
From: Gersh Avery	Read Replies (3) \| Respond to of 52237

There's one or two very thin ascending forks on the SPX right now .. Because they're thin I haven't even bothered to chart them .. they'll collapse quickly by being so tight. Today is the second day that we've closed above the upper tine of the old SPX fork that has done so well for so long .. I've been keeping a half eye on this NDX fork: homestead.com We hit the mid tine on that one and pulled back from it today. So the NDX hit resistance and pulled back. The SPX closed above resistance, yet the tine is trying to pull it back in. The fact that the SPX has closed above this bearish fork is bullish for the index. No realistic ascending forks isn't good news. Lee talked about my "stelth distribution" concept. That is, using calls + running the market up as a method of distribution. When such an event takes place the stock suddenly is unloaded on the markets over the weekend of options expiration .. neat trick: no volume on the charts! Suddenly there is excess supply of paper .. price goes down. That gives me a hint about how these sets of forks will probably resolve themselves. So then .. we'll either go up or down <g> . I think that the old SPX fork will pull the index back inside of it. That would set up a potential >200 point SPX fall. Since the index has closed above the fork, if it does get pulled back in the action may stop at the mid tine. That's still ~105 SPX points. That action would produce a good ascending fork to ride. The NDX fork should have been ascending. It was formed with a set of low-high-low points. Since the second low was so far south, the fork slopes the wrong way. Another way to show the weakness of the index while it was being formed. I guess that it's possible for the NDX to break above the mid tine. If it did that we could well head toward the upper tine. I don't see this as being positive for the market in the long run. All in all .. we need to form a base. We really haven't done this yet. Large pull backs will be required to form the base for the next solid move up. I'm going to try to put up a chart this weekend showing you what I mean by a base.