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Strategies & Market Trends : Candlestick Charting--The unknown indicator -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (945)	12/14/1997 2:56:00 PM
From: MonsieurGonzo	Read Replies (1) \| Respond to of 1589

Glen; RE:" PUTs..." Hello, Glen. I've just finished scanning things. MRK is a terribly strong stock - the #1 component of DRG.X index. I assume you are seeing that Doji after long white candlestick on the Weekly Chart for MRK, Glen -? But take a look at the index, daily candlesticks, and you'll see all kinds of top-looking candlesticks up there. I was paper-trading that index (with a PUT) on Friday. The drugz have been considered one of those "defensive" sectors where MM's still invest when things start to tank - people gotta buy drugz no matter what happens. They have been a major part of the recent UpTrends in INDU and SPX indices. Here's a breakdown of the drugz sector for you to play with... MRK 15.2 PFE 11.7 BMY 11.6 JNJ 10.5 GLX 9.4 LLY 8.4 SBH 7.0 ABT 6.2 AHP 5.7 SGP 5.2 WLA 3.6 PNU 2.2 AMGN 1.7 BAX 1.6 ...the numbers are weights based upon capitalization; the DRG.X index contains most of these components. I stuck them into a portfolio on Yahoo along with the symbol ^DRG (for the DRG.X index itself) in order to monitor it. Barring some kind of terrible sentiment on Monday, which causes everything to just plain tank, I am expecting a bounce upwards from this oversold condition in the DJIA (INDU) and SPX/OEX indices. I consider this a "technical correction" from having broken an UpTrend line, and a retracement thereof. Another, perhaps better candidate for shorting is the PLN.X airline industry - I'm looking that one up now. I did paper trade PUTs on JBIL and REAL last week, based on their candlesticks. Man, I wish I had actually executed those! What is keeping the internet sector supported - look at AMZN and AOL. (?) MICKEY MUST DIE -Steve