To: donald sew who wrote (52257 ) 9/12/1998 2:53:00 AM From: MonsieurGonzo Read Replies (3) | Respond to
Donald; RE:" Tech Stock Options "unnnghhh ! I had to wade through a zillion wasted bytes of bandwidth to find 5 or 6 postings about making money (^_^)I will not add to my PUTs today... bounced - we both knew it coulda gone either way, Donald.The overall short/mid-term trend is still down... medium-term Trend is DOWN - basis: evening star centered on 17-JULY. The DownTrend Line poses resistance at DOW 8150 +/-50.near-target = DOW 7400 +/-50 short-term Trend is UP - basis: Thursday's low, an evening attack ~30 minutes before close (13m Hammer candlestick ), and Friday's morning attack re-test of (this low) DOW ~7520, which lasted 13 minutes. {13m = 1/30 of a 390m trading session }morning attack was met by an immediate 13m thrust response of 100+ DOW point extent. Summing these two 13m candles together reveals a massive bullish Hammer candlestick as the 26m result. An up-wave is now in effect.near-target = DOW 7900 +60/-40 far-target = DOW ~8150 +50/-100 [ DownTrend Line ]...we may get a pop on Monday .quote.com <--- refer to INDU ,216two waves as of Thursday's evening attack and Friday's morning attack , within an upwardly-biased trading-range channel. The near-target around ~7900 represents a mid-channel line (and fibonacci level) parallel to, and within the upward-biased trading range containing these waves.waves " within these trading ranges approach perceived support at the bottom of their channel - where we were late Thursday, early Friday - it is extremely dangerous:fail , the subsequent decline sweeps (all sectors) to a wholly new level - next DOW level is what, ~6950 ?succeed , BearMarket rallies tend to be explosive by nature, as they are amplified by short-covering.INDU ,216 chart - this is the second trading range channel level since the DownTrend began. The first level was based around ~8350 +/-50 support. This previous channel contained four separate waves, testing support four times: as if walking on a tightrope ; only to plunge through perceived support, rather than bounce - on the fifth attempt.tend to bounce their way (to the right, the future in the time sense) towards the medium-term DownTrend Line resistance - and then either breakout or break-down in crash mode .strange attractor ", pulling the waves along the channel, towards it. But the caveat is this: there is no guarantee that the trading channel will remain intact until the DownTrend Line is met and tested; indeed, it can plunge on any test of the perceived supports of the trading range channel.time ... as in, "how long will it take until this trading range channel of waves reaches the DownTrend Line ?" We know that the preceding sideways movement required four waves , making two attempts to break out of the DownTrend , which failed.
