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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (17021)	7/27/2004 10:07:36 PM
From: Little Joe	Respond to of 110194

Chart Update I think today's action marks at least a short term bottom in the general market as well as gold. I do not have a lot of time to post charts, etc. but I will give my general observations. First: several of the major indexes are at or near their lower bollinger bands and have given reversal candlestick patterns, i.e. piercing formations or engulfing formations. These include the following: DJ-65, Wilshire 5000 and 4500, S&P 400 and NYSE composite, OEX, OSX, Russell 1000, 2000, and 3000 and small cap 600. The persistence of the same pattern in so many indexes gives me high confidence that this is a playable bottom. On the other hand the dominant pattern in gold stocks seems to be the hammer. Potentially bullish hammers in the following stocks: ABX, CAU, DROOY, EGO, FNX, GRS,GOLD, GSS, HL, HUI, KGC, and XAU. While the hammer pattern should be followed by an upday to be acted on, I feel reasonably certain that the persistence of this pattern across the spectrum of gold stocks, coupled with the fact that most gold stocks are at lower bollinger bands and reflecting positive divergences with Wilder's RSI, and in several cases, stochastics, make this a high percentage play. Again I think that at least a short term bottom is in. Little joe