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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Patrice Gigahurtz who wrote (83247)	6/26/2002 8:30:10 PM
From: Tom Pulley	Read Replies (2) \| Respond to of 99985

Today's recovery could easily have been driven by short covering as the shorts would be likely to take money off the table and cover at a retest of the Sept. low. There also could have been some buyers who were waiting for the retest of the Sept low. If this rally fades prior to the 1480 area on the Nasdaq, I have to think we are not through with this decline yet. I'm still in 100% cash and waiting for an indication that this decline is over. Right now the main reason many people believe we might have bottomed is that we have retested the Sept. low. I don't know if that really is a meaningful indicator. It makes me nervous that we had "news" that could have led to the much discussed "capitulation", but we still didn't get it. I think risk is still high and I'll wait awhile before buying back in. Now that I've made the bear case, that should spur the rally to begin in force! Tom