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 : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (15836)	5/16/2001 10:03:40 AM
From: r.edwards	Read Replies (3) \| Respond to of 30051

""I stated that a little pause/pullback would actually be preferable. A period of lateral action would occur because of the speed of the run off the late-March bottom, up and thru the supply area that began at 10300 up to 11000. I also pointed out a similar period in 3/99 when the DJI stalled for some three weeks just beneath 10000 after its huge run from 7400 off its 10/98 bear market. The similarities are that then and now belief was that the rally was over and the bear market would resume. 10000 was finally overcome, and the DJI ran to 11200. The ingredients to watch during such a lateral period are as follows: 1. Volume has to be low, indicating no real sellers at work – more a case of a buyers’ strike. We have seen three days below 1 billion shares during the past seven days, including the lowest day of the year. The rest have been barely above 1 billion. 2. The A-D index has to show good signs of relative strength. This indicator has moved over its early-March peak, which coincided with just below 11000 – a clear sign of relative strength. Plus 736 yesterday vs a 4-point loss. 3. Sentiment must remain negative, indicating skepticism that, in this case, 11000 is a top. The past six days the P-C ratio has averaged 164%, and that includes one reading of 96% – without that reading, it would have averaged 176%, which would be very bullish, given a lateral market. The 164% figure is still a really good number. 4. After a huge run from 9100-11000, all the DJI has done is trade between 10700-11000 – as a matter of fact, the past seven days, the range has been confined between 10800-11000. Not much of a pullback, is it? "" From RJF....