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Strategies & Market Trends : Why the markets will continue higher... -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (634)	2/6/1998 10:18:00 PM
From: bobby beara	Read Replies (1) \| Respond to of 745

Hi GZ (oops I meant to post to GZ sorry), I think your right. We are at the same overbought reading on the McClelland Oscillator (been there for three days now) that we were at on Oct. 8th, Dec 8th, Jan 5th, however this time is different -g-, we've broken to new highs convincingly on the S&P and people who are shorting this rally I think are going to run for the hills when Dow breaks 8300 (if it does on Monday). Some TA people say that extremely overbought conditions during a breakout phase can really make for powerful rallies - maybe because so many people have used this or other overbought indicators one too many times to short. We also had minor change readings on the Oscillator Wed & Thursday, which means a major move in the market averages within 2-4 trading days. Add in the Good feelings from the Winter Olympics and I wish I would of held onto my calls today =\|:-) bwdik bobby beara

To: Chip McVickar who wrote (634)	2/7/1998 1:22:00 AM
From: GTC Trader	Read Replies (1) \| Respond to of 745

Chip, << I guess this tells me early next week could be important and a substantial move upwards if nothing political alters the markets. >> Does the pitchfork tell you that the move will be up, or just that the move will be substantial? With the Asian problems, Clinton problems, and Middle East problems, I think FA indicates a downmove soon. Does your TA contradict the potential for a big downmove soon? TIA, Happy

To: Chip McVickar who wrote (634)	2/7/1998 7:20:00 AM
From: Cage Rattler	Read Replies (2) \| Respond to of 745

Chip: Greetings. Re silver, given any thought on shorting at current level? Perhaps GZ has some thoughts -- that is if it's still raining in Florida. ;-) Ciao, Ted

To: Chip McVickar who wrote (634)	2/8/1998 3:25:00 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 745

It is interesting. I hope I didn't over sell my other method. It's based on cycles. 1) All you need to do is take the two consecutive most recent cycle lows and measure the number of days from low to low. 2) From the high of the most recent rally which occurred after the second low, measure forward in time the same number of days and place a point there at that time and price. 3) Draw a line from the most recent low to that future point. There is the real support line. 4) With every new high in the rally, recalculate the support line. 5) When prices finally break that line, you will find a violent sell off and a genuine change in trend. 6) The reverse is true for a bottoming action. I use this exclusively for bonds today. This is why I went long this past summer and short a few weeks ago. It really is simple, but I probably confused you, I hope not. GZ