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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (17126)	6/2/2003 11:29:27 AM
From: J.T.	Respond to of 19219

The market telling the tale in the tape of price action. After violating all the trading rules I mentioned from May 8th, Message 18928142 Richard Rhodes tossed in the white rag: moneycentral.msn.com Summary Report: Round 8, Week 21 -- Updated Friday, May 30, 2003 2 buys from a beaten-up bear The market definition of capitulation may not exactly be when the bears finally give in and admit the bulls are right. And besides, Trend Trader Richard Rhodes didn't exactly surrender with his latest Strategy Lab posting. Our defending Strategy Lab champ still believes the market's long-term direction is down. But Rhodes this week became the latest of our bearish players to say "I can't fight this rally anymore." Rhodes writes that the current rally -- which he calls a "test of major resistance" -- has already lasted longer than he expected. And it will end, he says: "My time horizon isn’t next week or next month, but somewhat longer. The balance of risk remains to the downside, which in my mind opens up an opportunity to profit substantially from the coming decline." But of course, in the long run, we're all dead. The short term has left Rhodes' Strategy Lab portfolio wounded, as the market has defied the doubters and advanced substantially since mid-March. One key rule for all traders, bulls and bears. If it's broke, fix it. "My current positions are not working, nor have they been working," he admits. "I will wait for several of these positions to develop. But I will exit several issues I do not believe warrant staying with. Also, several stocks are showing signs of breaking out to the upside, and I will take that technical signal to enter them." Rhodes covered his short positions in National Semiconductor (NSM, news, msgs), Phelps Dodge (PD, news, msgs) and Nextel Communications (NXTL, news, msgs), taking a loss on each. And he just flat-out bought shares of Novellus Systems (NVLS, news, msgs) and Eastman Chemical (EMN, news, msgs) -- just his second and third buys this round. That makes Rhodes the last of our Strategy Lab bears to buy in, at least temporarily, to the market's recent wild upward ride. *********** Best, JT