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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (4316)	7/19/2001 5:22:15 AM
From: Moominoid	Read Replies (1) \| Respond to of 33421

I just want to know what you think will happen. Not understand pf charts. This is what Yardeni says and I agree. He doesn't aheva dollar index commentary. David _______________________________________________________________ yardeni.com Sterling Commercial buying activity subsided slightly last week in our latest results. Nevertheless, we still emphasize that current buying volumes remain near levels that are technically significant in two respects. First, higher Commercial buying volumes, especially when sustained, suggest that the recent low is an important longer-term bottom, and second, such support sometimes signals an attempt to break above long-standing resistance. While still somewhat choppy, price action continues to reinforce our Commercial indicators, as the current bounce implies a confirmation of a very significant support level that dates back to the early 1990s. Other factors also suggest that sterling may regain some luster. As we've noted previously, prices historically begin to stabilize in this market as Commercial buying momentum increases during the course of pullbacks, and current price action seems to be a good example of this tendency. Furthermore, the vast majority of the press is now extremely confident that the U.S. Dollar will remain strong. As demonstrated by many other markets, unanimous confidence tends to breed complacent hubris, and crowds have a way of being incorrect just as this type of confidence takes hold. The data are beginning to suggest that what we saw at the beginning of the year in the U.S. equity markets may occur again, but this time in the currency markets. Look for stabilization at new levels of support surrounding the Mega Trades channel on the daily charts, but remember that patience is usually necessary in order to realize payoffs commensurate with the effort of watching this market, as long-term bottoming processes can take some time to unfold. (7/16/01)