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

To: dennis michael patterson who wrote (8240)	5/30/2001 9:17:30 PM
From: Nancy	Respond to of 52237

ALTR, IDTI & NVLS mid quarter update tomorrow after close. STM analyst meeting.

To: dennis michael patterson who wrote (8240)	5/30/2001 9:46:21 PM
From: donald sew	Read Replies (3) \| Respond to of 52237

MAY 30 INDEX UPDATE --------------------------- Short-term technical readings: DOW - CLASS 1 BUY SPX - CLASS 1 BUY OEX - CLASS 1 BUY NAZ - borderline CLASS 1 BUY NDX - CLASS 1 BUY SOX - CLASS 1 BUY RUT - CLASS 1 BUY VIX - oversold region(inverse to market) 5-DAY TRIN - 8.41 Per my short-term technicals the overall market is in CLASS BUY territory, and the VIX and 5-DAY-TRIN are lining up. Readings of the 5-DAY TRIN above 6.00 is a short-term buy, and today was the 3rd day in a row where the 5-DAY TRIN has a reading above 6.00. It is not uncommon for the 5-DAY TRIN to have readings above 6.00 for a few days in a row, but eventually it turns. Much of the stuff I use are lining up for a SHORT-TERM reversal to start tomorrow. If the market closes tomorrow negative and closes near/at the lows, that would be hint of a possible negated CLASS 1 SIGNAL and would be a significant negative for the market. Im not predicting a negated signal, just mentioning a less likely possibility. If a firm reversal doesnt start tomorrow, we should at least see DOJIs/SPINNING TOPs which would be a hint of a reversal, if not then the possibility of a negated signal exists. I have mentioned previously that the immediate short-term trend is still up, since there were no LOWER LOWs set. Unfortunately the SOX today did set a LOWER LOW. As mentioned for months, I feel that the SOX is leading the NAZ/NDX. In light of the SOX setting a LOWER LOW, I am suspecting that the NAZ/NDX could also set a LOWER LOW, whether it is immediately or in the next short-term cycle. I do consider today's action in the SOX to be a significant negative for the NAZ/NDX. Im not saying that the NAZ/NDX will tank, just that the rally in the NAZ/NDX which started in early APRIL, may now be slowing down/weakening. With the LOWER LOW in the SOX, I also suspect that the forthcoming rally in the NAZ/NDX may not be that strong in the sense that it may not be able to set a HIGHER HIGH. Recently, the NAZ NET NEW HIGHS-LOWs was approaching 200 and steadily above 100, but with todays action the HI-LOW was only 34. If the NEW NEW HIGHs-LOWs cannot improve soon and continue to deteriorate, that would also support the belief that the APRIL RALLY may be weakening. Recently, GOLD got as high as 293.50(NY market) and the LOW was at 255.80 in early APRIL. GOLD got as low as 264.20 today which represents about a 78% retracement. That is beyond the common FIBONACCI pullback of 38-62%; therefore I would consider such as being bearish. As of todays close I have oversold readings in GOLD/XAU/many gold stocks, so Im an suspecting some sort of a rally, but with such a strong pullback in GOLD, I am also suspecting that the forth coming rally in gold stocks may not be that strong. If GOLD cannot rebound quickly and significantly, then I would feel that the gold stocks may continue to pullback. In light of this strong pullback in GOLD, I will not add new gold stock positions, at least not yet. I purchased the JUN 110 CALLS(DJVFF) @ 1.30, this afternoon. Im not expecting a strong rally, but just a tradeable rally. In our website and my personal mutual fund account we added a UOPIX(long-NDX) position. Again, not expecting a strong rally, just a tradeable one.