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Strategies & Market Trends : The Market Beacons -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (865)	4/28/2001 9:33:45 PM
From: Magnatizer	Respond to of 1298

Sandeep The cross for the Dow was on Wednesday. The buy signal was yesterday close as it closed above Wednesday's high. I took profits in the DIA position for a few reasons. 1) I prefer the options to the DIA. I had to go with the DIA long when my broker was having problems with djx options. DIA is a real account hog as far as funds required. 2) SPX has a short term upswing into it's cross. In general the magnet trendline crosses reverse short term trend. With the likelihood of SPX firing sell signal early next week taking money off the table long seemed like a reasonable move. 3) NDX failed to support dow with a buy signal on Friday (After Thursday cross). It could very well do so early next week which would likely lead to a SPX buy signal as well. I will distribute funds accordingly on such a signal (buys on spx and ndx) 4) Dow is at it's highest level magnet downtrend at this point. 7/2/99 to 8/17/99 highs are the anchors. If you plot this line on a chart you will notice it has a tendency to be quite stiff. Also, if Dow can hold a break out through this line it will be in magnet "bull" market. That being, it has no overhead downtrends. Though I try not to let influences outside magnets and other technical indicators influence my decision making process I must admit I find it hard to believe the Dow could be in a bull phase. BUT, I am holding the Dow call position just in case ;) 5) Last, but certainly not least... One of the best futures traders I know was taking off his long SPOO position for insane points. I partly took this position off in honor of his trade. ht Mag