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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (24588)	8/21/1998 6:21:00 PM
From: Bull RidaH	Read Replies (1) \| Respond to of 94695

Kip, Wow, that guy is the ultimate contrarian. After today, I believe you'd have to say anything is possible, but I view his call as unlikely, but will certainly play along if an overwhelming rally consumes us. For now, I expect strength into early to mid next week. From last Sunday night's globex capitulation (which is still the low mark for this move with 1048 on Sep futures), which marked the end of the large 1st wave down off the top, we saw wave 2 up begin in a 3 day rally that concluded at Wednesday's high. Wednesday's high marked the end of Wave A. From there, the market crumbled in a B wave decline that concluded at today's lows. From today's (friday's) low, we have to watch for the completion of a 5 wave rally (wave definition seen on a 30 minute chart). This of course is the C wave rally, and should mark the end of this corrective action upwards. I don't have a target for it yet, but considering the nature of the "V" bottom we made today, I would say last weeks highs give or take 1% should be pretty close. The end of that rally should conclude wave 2, with wave 3 on deck. Wave 3 should get off to a quick start down, then become a slow, grueling grind lower, much like Jan-Mar.'s rally was a nice, steady, grind upward, but still covered alot of ground on a straight line. Unless the high point of the c wave rally next week eclipses greatly that of this past week's high, my target for wave 3 down will be set at 7100. I'm going to make this very clear... If 8316 Dow is taken out at anytime in the next 3 weeks, you can rest assured that wave 3 is underway, and it is time to get excited about the bear play, and the 7100 target. Until that level is broken, I will contain all bear enthusiasm (yes, the spanking I took Monday when 1055 didn't give way intraday taught me a lesson!!). Good luck and Best Wishes!! David