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

To: Johnny Canuck who wrote (40886)	3/31/2004 3:09:30 AM
From: Johnny Canuck	Respond to of 70420

The Worden Report (Tuesday, March 30, 2004) The Price of No Corrections The assumptions remain unchanged. We are in a minor uptrend that I think will find its Little Big Horn (or Waterloo, if you prefer) around the 50-day moving averages of the major indexes. The shrinking volume, as the rally continues day-to-day, is the most thematic characteristic of a failing rally. Keep in mind that what the Assumptions table is meant to achieve is that we can dispassionately separate ourselves from doomsday scenarios, which can come to mind very easily during falling markets. I believe that when this correction ends, the Primary Uptrend will still be intact. I always try to remind myself that corrections are miserable and frightening by definition. Without the discomfort and fear there would be no corrections. The market would march upward until the bull gasped, rolled over on its back and died, leaving a terrible reincarnation gap somewhere far below. That would be the price of no corrections. It isn't as if everything is going to hell in a hand basket. Using version 2.3, I just ran off a quick sort of the SP-500 to count the number of stocks that today closed above their highs thirty market days ago. The answer was 177. That's 35%. Not so bad. -DW ASSUMPTIONS Primary Trend: Up Intermediate Trend: Down Minor Trend: Up For ongoing remarks pertaining to ASSUMPTIONS, please refer to the notes attached to the appropriate charts (COMPQX, SP-500, DJ-30). The concepts of Primary, Intermediate and Minor trends emanate from Dow Theory. "The Technical Analysis Course" by Thomas Meyers and "Technical Analysis Explained" by Martin Pring present excellent explanations of the trend concepts and well organized overviews of technical analysis in general.