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

To: Johnny Canuck who wrote (39751)	6/18/2003 2:31:35 AM
From: Johnny Canuck	Read Replies (3) \| Respond to of 71521

T2113=3.07 still way overbought. Intra-day signal is indeterminate. COMPX started to set up for a sell signal, but was not completed. Same thing on the daily chart. McClellan Oscillator is 10.09, a neutral reading also. The next 2 days will tell the tail. The COMPX is within striking distance of test the recent high around 1684. Tomorrow will be day 3 of the current rally, so a pullback is expected. Note that Friday is options expiration though so strange things can and do happen during this week. GM and MSFT broke above their 200 EMA's on volume. These stocks have been laggards and they need to participate for the market to move higher. Watch both to follow through in order to confirm any break out in the COMPX and DJ30. A curious rotation into defensive stock was noted in my break out scan today. Gold and drug stock saw a number of break outs as did their composite indices for their sectors. Drugs were driven in part be the new drug news on PFE. SGP had less reason to follow along. Gold stocks like DROOY, NEW, PDG brokeout on no new I can find. I would assume it means traders are expecting a pullback soon or it is insurance in advance of the Fed announcement next week. It looks like it will be sell the news next week given how far the indices have come the last few weeks. A large rate cut would mean the economy is weaker than expect. The Fed needs to do 1/4 point to keep the rally going. After the cut there won't be any more near term good news and earnings pre-announcement season begins in earnest. Wait for the failing of the the break out to get net short. The market has a long way to go down to get rid of the excesses. Similiarly wait for the break out to confirm to get net long if the market continues up. Hard to believe I know, but you have to trade what is front of you. It is still a daytraders market so remember to stay away from overnight holds.