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Microcap & Penny Stocks : Financial Intranet Inc. (OTC:BB:FNTN) -- Ignore unavailable to you. Want to Upgrade?

To: Robert W. Dog who wrote (600)	1/13/1998 8:07:00 PM
From: TechnoWiz	Read Replies (2) \| Respond to of 2897

Good Evening Robert: I will try and explain the importance of basing patterns as a pre-cursor to powerful and sustained upmoves. The US stockmarket has had three great basing patterns in this century, which preceded some amazing upmoves, one of which is still ongoing. The first great base began to form shortly after the turn of the Century and lasted around 19 years and was contained by Dow 100. This was followed by the roaring 20's bull market. The second great base began in 1932 and lasted through 1950 and was contained by Dow 200. This was followed by the 50's and 60's bull run which took us to the 1000 level. This next great base was formed around the 1000 level for almost 20 years and because it was such a defined base it produced a strongly defined and powerful uptrend which we are still in to this day. Another example of a great base that produced an awesome bull market was Gold. Prior to 1974 Oil shock Gold had been basing below $35 per ounce for half a century, then it suddenly moved to new level of $200 pulled back to $135 and based out of a while and then roared to 875 in a very compressed time frame. The same theory applies to stocks. Most Dow stocks had been basing out for years before they took off in the 80''s bull market. The same applies to intermediate and short term analysis of stocks and derivatives. As a general rule any stock which has been stuck in a tight range for a while as FNTN has is likely to move dramatically out of that range and strongly away from it for a sustained period. Again as a general rule, the longer the base, the longer and stronger the move. If you take a ruler or a ruler or compass and measure the base, and then swing the compass in an arc until it is vertical or produce the ruler in the same way, you should get some idea of the potential move in terms of time and price. Also as a general rule, the timeframe of the base equals the timeframe of the next move. For example a 20 year base terminating in 1982 should produce about a 20 year bull move...so far so good, but it can be shorter or longer. Hope this clears things up for you rgds Wiz