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To: donald sew who wrote (2086)	2/15/1998 10:48:00 PM
From: d. alexander	Read Replies (1) \| Respond to of 2675

off-topic, Dow theory: There was a piece in Barrons, late October, which is where I get my info. At that time there had been an August high in both Industrials & Transports, followed by pullback in both & subsequent new high in Transports. The Industrials, however failed to make a new high & pulled back to a lower low (on Oct 27) than the previous pullback; producing ONE-HALF of a Dow Theory Bear Market signal. If the Transports had also pulled back below their previous low, that would have signalled arrival of a Bear Market. They didn't. When the Industrials did manage a new all-time high last week, whew, the danger was over for the moment. So any pullback right now is not specifically a Bear Market threat. Sorry to interrupt. Donald, I'm one of those lurkers who follow your UPDATES - not for trading options, but I'm beginning to wish I could understand what all that option stuff means. Anyway, many thanks for posting UPDATES. DA

To: donald sew who wrote (2086)	2/15/1998 11:19:00 PM
From: Uncompaghre	Read Replies (1) \| Respond to of 2675

Donald, Not that involved. The reversal I am speaking of can occur in an index, a security price chart, option or commodity price plot...etc. It occurs when after an extended downtrend, an issue hits it's low and reverses, only to fall again to test the old low. On the ensuing uptrend, when the last (post low) high is breached, this is referred to as a 'Dow Theory' reversal. An excellent book is written by Victor Sperandeo: Trader Vic-Methods of a Wall Street Master. In this book, he goes into a more intelligible description and the very beneficial trading benefits which arise because of it.