To: StockOperator who wrote (37827 ) 7/24/2002 11:26:35 PM From: StockOperator Read Replies (2) | Respond to What can you say about a day like today except get out of the way! Today's action was enough to make anyone dizzy and disoriented, especially in the context of the last couple of weeks. The question on everyone's mind is what does it mean? Was today the bottom that so many were looking for? Generally I would not even comment on today's action, regardless of how impressive it was simply because we are in the middle of the week. My work has shown that it's how prices close out the week that matters most. With a couple of days left anything could happen to completely change the dynamics of today's gains. Looking back at the DOW over the past two weeks will prove that point. So for today's move in prices to really mean anything we need a continuation of today's move through the rest of the week to really repair some of the huge damage that has been done. Let me give you an example of what I'm talking about. In my post from July 10 #reply-17720146, I mentioned that by using some simple measuring techniques that the DOW could easily lose another 1500+ pts this qtr. The high that day was 9134. The low this week is 7532. Which gives us a spread of 1602 pts in only 11 trading days. Talk about disorientating. So with roughly five or so weeks left in the qtr. I am not surprised to see a move like today. That distance traveled by the DOW is also the reason why I think it makes sense to focus one's energies on the groups or individual stocks that have traded tighter, whose prices offer the smart money less leeway in trying to deceive us. Stocks like CSCO, QCOM, AOL, VRSN, VRTS, SCH,,,,. These guys have huge pressure bearing down on them with very little wiggle room. So if today's action has any kind of meaning at all, you will see a continuation the rest of the week with many of them closing the week higher than where they opened. That would be my first clue. But let just say in advance because I see the way these patterns have laid themselves out for both the indices as well as so many individual companies that I seriously doubt that today's move was anything more than normal backing and filling. Which is why I am going to be from Missouri on this one and let the market prove to me otherwise.
