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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (32791)	3/21/2002 8:54:06 PM
From: Susan G	Respond to of 52237

yes, late in the day some volume came in, there was quite the short squeeze on all the highly shorted nas stocks, most of them were up at least 2 or 3 pts late in the day. It's always hard to know if those type of rallies will hold, especially right at big resistance...NDX 1500. tomorrow will tell! There's another bullish wedge on the nas futures daily chart though...so maybe. Isn't that big IPO tomorrow? If so, they will ramp it for sure in the am.

To: Chris who wrote (32791)	3/21/2002 8:58:31 PM
From: Susan G	Read Replies (2) \| Respond to of 52237

Here's Ed Down's nasdaq info Double Bottom NASDAQ forms double bottom, rallies in afternoon. Use 1,850 as a fulcrum. The commentary on this page is based on the NASDAQ Composite index. Equivalent numbers for the NASDAQ 100 are in () within the commentary. - SW Team From yesterday's commentary, "...the NASDAQ has also formed a trend line across the highs of today's decent, seen in the 15 Minute Chart, similar to the Dow and OEX. A break of this trend line to the upside could spark an upside move..." As the Dow and OEX dropped from the Open, the NASDAQ held its ground, breaking the trend line to the upside to form a double bottom that ignited a powerful afternoon rally. Looking at the Daily Chart, you can see that the NASDAQ has pulled back almost exactly to 50% Retracement from the 1,700 (1,330) low to the 1,950 (1,575) high. Markets tend to reverse trend at key Fibonacci (38%, 50%, 62%) retracement levels. This implies that today's afternoon rally could be the beginning of a new uptrend. Also, if you look at the 60 Minute Chart, you can see that the NASDAQ has formed a downward-sloping consolidation at the high. These consolidations usually break to the upside. However, the index has pulled back quite a bit from the saucer top that formed three days ago. The afternoon rally that occured could have been a reaction rally due to an oversold condition. We need to watch for a failure tomorrow through the important support level at 1,850 - our "line in the sand" for Friday. Short Term NASDAQ In the short term, the index has formed a trend line beneath the lows, seen in the 1 Minute Chart. Watch for a downside break of 1,865 for short term direction, intraday, and go with it, holding a tight stop at 1,870. Medium Term NASDAQ In the medium term, we exited our Short at 1,845 (1,470) for a breakeven trade (5 points on NDX). We then entered Long at 1,850 (1,470). Hold stops at the entry level, and use it as a fulcrum tomorrow, going Short below 1,850 (1,470). Summary The NASDAQ formed a double bottom today, leading to a strong afternoon rally, stopping us out of Shorts and putting us Long. We are now Long from 1,850 (1,470), with stops at the same level. Use this level as a fulcrum for tomorrow (!) Thank you for listening and good luck in your trading. Ed Downs edowns@nirvsys.com