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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (81275)	8/8/2001 4:37:01 PM
From: eichler	Read Replies (4) \| Respond to of 99985

Doug, I agree that we should be nearing a reversal. In fact, the more the compx declines now, the more bullish I get. (hows that for a paradox?) home.earthlink.net Basicly, my long and short term outlook hinge on the observation made by many astute market observers (TA'ers and FA'ers alike) that we have been and still remain within a trading range of sorts with a downward bias. The correct idea is to be a seller at the top of the range and a buyer near the bottom of the range. So easy to say but so hard to do. I estimate the lower parameter of the support line drawn is at about 1898. I would think that this would be a likely level to begin pouncing on longs. I'll bet that those who couldn't wait for this downward wave to get rolling and fully manifest itself are wishing they had waited now. Personally, I think jumping on the short train at this late juncture is belated. I strongly believe the correct (and opposite of the trading public) posture at this point is to be preparing to take profits on shorts and preparing a list of favorite stocks to go long (it goes without saying the individual stock chart candidates must be evaluated as well!). In light of the very negative candlestick on today's chart, it would be prudent to wait at least for the 1900 level and upcoming attack of the support line before jumping in.... I might add that co-incidentally, the support line drawn and the 62% fib retracement of the 4/4 low and 5/22 high are lining up very closely...should be a powerful support, IMO and could provide a strong reaction to the upside. In observance of the bullish Rydex numbers on the MITA thread, excessive bearishness is unwarranted unless that support is taken out. Best, Eichler