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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (34)	12/19/2001 10:32:43 PM
From: DlphcOracl	Read Replies (1) \| Respond to of 16631

Dave: The technicals from everyone I read are truly mixed. The indices can easily move 5-10% either way in the next week or two and it is truly a coin toss. One cue I am looking for is to see if the Dow and/or S&P indices can cross their 200-dma as the Nasdaq did one week ago. If they do, this is a technical signal that should draw substantial money into the market. It may be that the Dow and S&P drag the Nasdaq along for the ride this time. With the weakness in the SOX, I am leery of initiating any new positions in tech stocks. Since the market is ST overbought and the indices are once again heading into stiff resistance, being patient and sitting on the sidelines in cash seems to be the prudent move. If the Dow and S&P fail to take out their 200-dma a second time, it sets up a "head and shoulders" pattern which may resolve the issue to the downside. Similarly, if the Nasdaq crosses 2000 and is unable to hold it a second time, this may also resolve to the downside. Sometimes doing nothing is the most difficult "trade".