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 : MP - Market Pulse -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (1124)	8/7/2001 6:55:31 PM
From: John Madarasz	Respond to of 1328

Stockmarket Cycles update for Monday, August 6th. As has become the custom, the market continues to perform in strange and unusual fashion. On a day when the breadth was negative by greater than 1.5-1 ratio, there were almost eight times as many stocks making 52 week highs as there were making 52 week lows. Today's single day Trading Index reading was 2.47 and that moved the 10 day TRIN moving average to 1.26. The Open 10 closed at 1.03, the New 10 at 0.73 and TRIN 5 closed at 6.91, an oversold reading representing a five day moving average of 1.38. Today's action appeared to add to the market's negative potential because it invalidated or came very close to invalidating potential nominal 20 day upside projections on some of the major averages. A neutral to sideways day tomorrow would confirm the invalidation of those upside projections, and remember there are still outstanding nominal 20 week downside projections calling for fairly significantly lower prices. In the newsletter going out today or tomorrow, we comment on both the Coppock curve and the Trading Index moving averages and note that at some point over the past several months both of them were giving bullish readings, at least for the Dow Jones Industrial Average. We know that the Coppock curve buy signal has now been aborted on the Dow Jones Industrial Average, and we know that this is the first time such an aborted signal has occurred since 1948. Isn't it interesting to note that some of the Trading Index moving average historic readings of late have not been seen since 1948. We remind you once again that we are in the Steve Puetz time window for a potential decline leading to a crash. We must admit it seems unlikely based on current market projections and the possibilities relating to future projections, but just the fact the we are in this time window at a time when the market has been acting strangely indeed deserves our attention and caution. Mutual fund switchers-both Rydex switchers and Fidelity Select switchers are in money-market funds or cash equivalents. All mutual fund switchers should call the telephone updates daily after 3:20 p.m. Eastern time and each evening. Stock-index futures traders-exit your S&P short positions tomorrow only if there is an hourly or half hourly cash reading above 1,210.60. There are no new projections for the XAU or for bonds. Have a great day. We'll talk to tomorrow. stockmarketcycles.com