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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (20241)	8/5/1998 12:23:00 PM
From: Magnatizer	Read Replies (2) \| Respond to of 79230

Stefan I am also a beginner in TA. I would say to consider oneself experienced in the field a good 5-7 years of work is necessary. I am but a infant TA wise. around 8 total months. But, that said, I have discovered a new technical tool. I call them magnets. They, thus far, have provided some very strong support and resistance levels. I also have a new method of using the magnets which gives me trendlines. (the magnets themselves are horizontal S&R) These trendlines which I am producing seem to have quite a knack for predicting market moves. Once the trendlines are broken the next trendline down usually becomes the target unless a magnet (horizontal) can hold the index or stock up while it bases out of its weakness. That said, considering the Dow sliced through 3 uptrend lines yesterday alone, I went quite pessimistic toward the market. Not official bear but very close. Plot the magnet areas on a chart and see how they do. If anyone wants periodic updates on the position of the up and downtrends in the magnet analysis feel free to ask. Please just once a week or so should be all that is necessary. FA wise I see many positives for the market. I see low unemployment, low interest rates, increased savings by baby boomers, increase spending by the US consumer. Earnings growth still present but slowing which should help to slow the economy which really helps to control the areas that need controlled, ie inflation and unemployment. If they remain in check then interest rates should stay very bullish. Average historical PEs are not as much of a concern to me. I feel higher PEs are justified mainly due to technological improvements. Lower costs of doing business are easier to come by now and with the opening of the world markets US businesses will be able to slash labor costs by taking jobs overseas. In the long run this will be very bullish for the US because we will end up creating a new type of job market which leans more toward a higher educated society (ie 4-8 years of college min.) which will give the US incredible potential. Keep in mind that I am not anti labor, I grew up in a true blue class household. I really do sympathise with the people who are bound to loose their jobs in the near term. they will either need to be retrained or go into the service field. I can't really imagine my father (a welder) selling ties. LOL that thought has me rolling. ht david