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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Fiscally Conservative who wrote (35356)	3/1/2002 11:24:51 AM
From: ajtj99	Read Replies (4) \| Respond to of 99280

Finally there, when the market internals are as bad as they are right now, there is an extremely strong case for distribution. This can fool even the most experienced traders. I know LG thought the drop in August was accumulation, but we know it was distribution. Normally when you see the markets rise on lower volume like we have lately, it's distribution.

To: Fiscally Conservative who wrote (35356)	3/3/2002 10:21:57 PM
From: LTK007	Respond to of 99280

FT,regards your question "distribution?" i repeat a post from earlier<< Security traders comments posted Friday night 3/1 at 9pm. Bear Market characteristics.......sensitive to good news.....slowing volume.........and some of the largest market bounces are known to happen in the midst of them. On Friday the ISM came out with good news and that led to a short covering rally. The INDU, OEX, SPX are technically on buy signals while the TECHS are not. The buy signals are coming while the stochastics are showing bearish divergence (higher prices not supported with higher stochastics) and the VIX / VXN are not setup to support a major advance by the market, therefore, we continue to be subject to further market weakness. As for next week, most indices closed at / near resistance levels and will likely pullback early in the week. INDU / OEX / SPX - Have given buy signals, however, they are showing bearish divergence on their charts on this move up and the VIX is not setup to support a big advance. TECHS - big bounce, however, the big picture has not changed....still in downtrends and the VXN does not support a big advance. OSX / XOI / Crude - Defensive sectors showing bullish triangle breakouts. XAU - Gold daily chart suggests a move to 75 area with strong support at 60. Retail (RLX) - toppy. Banks - important sector for Economic recovery.....this sector remains under the 50MA and the weekly chart suggests further downside.>> end quote