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

To: John Pitera who wrote (5038)	11/14/2001 8:16:49 PM
From: isopatch	Read Replies (1) \| Respond to of 33421

John. A fine piece of analysis/eom

To: John Pitera who wrote (5038)	11/16/2001 9:46:25 AM
From: John Pitera	Respond to of 33421

update on the Nov 14th post I'm responding to....... the price objectives are more critical than the time objectives, especially since I'm seeing some conflicting time cycle info and the seasonality is a bit bullish, next week. What we should remember is that Thanksgiving is only a week away and so we may not see much happen prior to the last week of Nov. In the past we've seen some seasonal strength Yale Hirsch in his stock traders almanac pointed out that since 1950, the day before and after T-Day were up, 33 out of 35 years. He published that in 1987, and sure enough it distorted the seasonality as the days were down 4 out of the next 5 years. But then their has been a net gain over 6 of the past eight years. On tuesday afternoon it was looking like we might have sprinted up to these 200 dma levels on the SPX, DJIA, NASD, OEX, RUT etc. by the close of business yesterday. But the market slowed down. stockcharts.com but you can see we've still got some room for more advances prior to hitting them stockcharts.com[m,a]dacly... look at this DJIA chart, stockcharts.com[m,a]dacl... See all those prior support levels at 10200, back in July, not much resistance on the above chart until we hit that old support, which has now turned into overhead resistance. And wouldn't you know it's also the 200 dma. as well -g-. I also have a couple of Fibonacci magnets in the viscinity. Also on the 3 above charts, check out the RSI, there is not a single momentum divergence on the RSI yet on any of the charts. So statistically we normally around 80% to 85% of seeing higher highs in price with some momentum divergences occuring. Obviously it would be good to get a couple of good down days, to then enable a pull back in the RSI and then have the price make a new higher high, while the RSI makes a lower diverging high. And it's not written in stone that we have to go all the way up to these 200 dma's before seeing a bigger sell off. Especially if we have an exogenous shock, like 9-11 or Argentina defaulting. John