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

To: Paul Shread who wrote (34039)	4/10/2002 5:45:45 PM
From: StockOperator	Read Replies (2) \| Respond to of 52237

Paul, Did you play your long trade idea from yesterday? Congrats if you did. Anyway how do interpret a day like today. Where you get a triple digit move in the DOW as well as a descent day in the rest of the avgs. If you turned on CNBC (something the avg guy still likes to do) and saw all that green there would be a lot to get excited about. It would at the very least put off any recent decisions of "getting out of the market" perhaps contemplated by the recent weakness. But you have to look a little bit closer and then ask yourself the same question. On one hand you can put a positive spin on the action in the defense sector as well as the trading in certain stocks like KSS, which looks to be breaking out here. Considering the political environment were in I'm not sure you want to point to the defense group as a sign of a new bull market. So when I see a day like today, especially knowing my points of resistance on a whole bunch of key stocks, I ask myself is this oasis for real or just another ploy by mr. market to, if anything keep investors hopeful, and of course in the market. On days like today I look at my entire assumptions (I know bad word <g>) based off my analysis to see whether or not something has happened to change that outlook. Based off the trading today, despite the triple digit move in the DOW, the internals have done nothing but REINFORCE all the things that I have been saying for the past two months. Months ago I said the pressure was going to hit stocks like MERQ, SEBL, AOL, ORCL...and just look at the damage done even on a day like today. Look at all the major players that didn't go along for the ride today. Then when I see stocks like DIS up a buck, kissing resistance that could kill it on any piece of unanticipated bad news, makes me even more leery of taking today's move at face value. I heard some favorable news on DIS this morning quoted by some analyst and it reminded of the upgrade on ORCL a week before the stock started to fall. The market is a lot like that mirrored maze you went into at the fair as a kid. Never trust the obvious. Then you have stocks like NOK and QCOM up some change respectively and I just smile at how the market works its magic. SUNW down only two cents while piercing into six month lows. Three stocks that the pressure will continue to bear down on. Don't get me wrong. I am not bullish or bearish on this entire market. There have been and will continue to be huge winners this year, for those that pick the right stocks. But that's the key, a stock pickers market. But there will continue to be huge damage in a lot of the stocks that the public has come to love over the last ten years. Just look at WCOM and T (can you believe a reverse split!) for proof of that statement. Profitable trading. SO