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 : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (44493)	11/28/2001 11:38:52 AM
From: Dealer	Read Replies (2) \| Respond to of 65232

This Won't End Gently (11/27/01) by Dr. Stepan N. Stool, Chief of Stock Proctology The Nasty blew the roof off Tuesday afternoon, meeting the revised centered moving average projections for all cycles when it reached an intraday high of 1965. The index had reached an earlier low of 1902.89 after opening weak. When there was no follow through on the early selloff, the Nas blasted off to its late afternoon high. After that it was all downhill to the closing bell, to close down 5.26 at 1935.47. It certainly felt like a reversal day, but this market's been full of surprises. As a result of the late selloff, the 8 day cycle oscillator on hourly charts flashed a preliminary sell signal. The 17 day rate of change, representing the 6 week cycle, also turned down from a second peak, lower than the last cycle high. The negative divergence is a classic sign indicative of the market's loss of momentum on the last rally, and presaging a significant decline. The 29 day rate of change, representing the 13 week cycle is also in a negative divergence. The index remains above the long term linear regression channel and the 10-13 week cycle oscillator is heading down, 5 days after a sell signal. This indicator tends to be early. On the last cycle it led the downturn by 6 days. Tuesday was the 5th day since the "sell." The Nas is overbought on an intermediate basis. It rallied to touch its declining 200 day moving average for the first time. There are short and intermediate negative momentum divergences. Dr. Stool believes the Nasdaq is at its most vulnerable position since the April 200o and May 2001 peaks. Investor sentiment is completely insane and out of touch with the reality of the major downtrend, as indicated by the 200 day moving average, and the cycle work. This will not end gently.