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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (20090)	8/23/2003 9:11:58 PM
From: chowder	Read Replies (1) \| Respond to of 23153

Condition of the market .... The S&P 500 signaled a key reversal on Friday. We not only have a possible bullish reversal pattern, we also have a confirmed distribution day as volume exceeded the previous day and the volume gets chalked up in the sell column. The financial stocks are breaking down technically. BK, JPM, MER, MWD and C all have bearish reversal patterns appearing on the chart. C looks the worst of all of them. C is breaking down below major support levels and doing it on above average volume. The chart clearly shows negative money flows and the stock under distribution. stockcharts.com[h,a]daclyiay[pc20!b50!f][vc60][iut!Ub14!Lc20!Lg!Lj[$spx]]&pref=G A drop below 42.40 makes C a great short, in my opinion. If the financials are going to continue to break down, the semi conductor stocks can't be far behind. AMAT, TXN and ADI all show the black-filled candle at the top of a strong uptrend. This is usually a warning they are peaking out. stockcharts.com[h,a]daclyiay[pc20!b50!f][vc60][iut!Ub14!Lc20!Lg!Lj[$spx]]&pref=G TXN and ADI will show similar patterns. Now, it is possible that all we'll see is a minor correction to support levels where we'll see additional buying showing up. However, this is where the "condition of the market" should provide a clue. If the broad market and the financials continue to pull back, the semi's are going to follow. In my own case, I have a 60% profit in RFMD. They are ST gains and I wish they were LT. However, I'm not sure the right thing to do is give back 20% and then find out the market will drop further. The next day or two are vital as determining whether it's time to take profits and go short. stockcharts.com[h,a]daclyiay[pc20!b50!f][vc60][iut!Ub14!Lc20!Lg!Lj[$spx]]&pref=G dabum