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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (13384)	7/29/1998 4:28:00 PM
From: FJV	Read Replies (1) \| Respond to of 42787

Chris, A few posts back, you indicated that you may dabble in GE on the long side at around the $90 support. I follow GE pretty closely as it is as good a proxy for this market as there is. The price action in GE today was very weak, especially in the last hour. This type of action by GE tends to be a leading indicator of the general direction of the Dow. I know that your technical indicators are pretty bearish for the market right now for at least the short and intermediate term, and I agree with your assessment. If we are correct, GE is not a stock in which to be long at this time IMHO. BWDIK. Crunch your numbers and let me know your thoughts. Thanks. Franco

To: Chris who wrote (13384)	7/29/1998 4:50:00 PM
From: Robert Graham	Read Replies (5) \| Respond to of 42787

It looks like the front lines are starting to break down, the stocks that have helped support this market from further losses. INTC looks to be continuing to break down. Well-defined intraday trend moving toward a support at 84. It looks like if this stock moves down any further, I would consider it a failed breakout. I will have to check my EOD charts on this later today. The technicals on this stock still look good with the MACD and Stochs not having given a sell signal yet. DELL looks to be demonstrating weakness. Its MACD and Stochs have been in sell mode, with the MACD recently following the Stochs. Still, critical support for this is at 100, so the stock has 8 more points to go to get to this juncture. It is right now just nudging through an intraday support. 106 1/2 is important intraday support. So it still can recover from here. AMZN was starting to break down earlier today and right before the close followed through. Both Stochs and MACD have moved recently into a sell signal. This stock is right below an important intraday and interday support which may have become resistance. YHOO looks to be starting to break down. It has moved past important intraday and interday support at 175 and closed there. Its MACD and Stochs have been in sell mode. Both indicators were at a support on the way down where this stock should of bounced. Instead, it gapped down on the open and has continued its decent. MSFT is breaking down. Both its MACD and Stochs have been in sell mode, but at a juncture where the stock could of bounced. Instead, there was an initial sell off of this stock first thing in the morning, then the stock consolidated at an intraday support. At the end of the day, there was more selling which brought it down to a very important support at 111 which it moved through before the close. Most of the stocks above are set up to fall further if they do not encounter new buying interest tomorrow. INTC technically looks to be in the best shape of the group. If this group of stocks deteriorate further, then I think this significantly increases the chance that the the market will reach and test 8750. So tommorrow is an important day for the market. I am sure some of you have already placed your bets. For it is gambling in this type of market unless you are a good day trader. When you have stocks like INTC looking like it is failing a sign of strength, a breakout, this is a very strong sign to be careful taking the long side of this market. IMO the smarter approach would be to fade moves up made by stocks, not buy into them. IMO there are basically only two players in this type of market: the novices who are used to have their head being handed to them, and the pros taking the other side of the trade. Just like there is important times during market junctures where you can tell the good analysis with market experience from the analysts that are not good but may be just following the obvious trend, you can tell the good traders from those who are inexperienced or not good at trading. This is such a time in the market. Observe and learn by using the novices as examples of what not to do. Tomorrow will help determine the near term direction of the market and whether fading moves up made by stocks is still going to be a workable strategy. Bob Graham