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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36810)	4/23/2002 4:25:15 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68015

[madtrader] Mon Apr 22, 5:53pm PDT Market I have been dealing with a severe case of season allergy this weekend, that has caused me tremendous amount of migraine headache. So I decided to take the day off resting. In between my daze, I caught some email and some dour commentary on CNBC about the economy and the market. Needless to say, we have given up all the gains from last week. And from the tones of my emails I got from some readers, and CNBC, I got the sense a lot of people are having big doubts again. There is little doubt that the market is near a crossroad again, at least based on the mood out there (that's if you believe the chatter on CNBC reflects the moods of the market). If you don't want to stick your neck out and make a call on the market, right now is probably as good as any time to lay low. Why? Using volatility measures, or ADX measures, whether it is on daily or weekly measures. The market is essentially trendless at this point. A situation that is comparable to July/August of last year. So the lack of commitment and the "fear" is understandable. This market is a coiled spring. When volatility recedes, as it has right now, you can bet huge volatility is coming. Am I any more bullish or bearish compared to my views prior to last weeks run? No. I am still as bullish as I was. But keep in mind, I am a realist and a trader. Which was why I did scale back my longs substantially after last Tuesday's run-up. The response today to WCOM's warning isn't at all surprising. To steal a line from Princeton Professor Bernard Lewis, the great historian of Near East: "When a society is unstable, people tend to be less tolerant." Markets are no different. We are still going through a great deal of upheaval, a period that is a first for a generation of investors and traders. When nerves are still raw, rash reactions are understandable. none