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

To: jjs_ynot who wrote (30123)	10/4/1998 10:34:00 AM
From: GROUND ZERO™	Respond to of 94695

Yes, interesting post about the Arms index. The Arms index will give you an indication of extreme oversold and overbought conditions, and I'm glad to see that, from the post you reference, the Arms index is about to give a buy reading. Not to dilute the significance of the Arms index, it's a highly noteworthy indicator, but the system I just posted here on this thread is something that a trader can use for position trades of several months in duration without having to wait for another signal 18 years from now. I suppose that, compared to the Arms index, my system is much more near term and gives buy and sell signals two to three times a year, sometimes more, sometimes less. GZ

To: jjs_ynot who wrote (30123)	10/4/1998 10:41:00 AM
From: Pierre J. LeBel	Read Replies (1) \| Respond to of 94695

You can forget the ARMS indicator for a while since the number Friday was 0.71 bringing the 10 day average down to approximately 1.3, way off the 1.5 needed to indicate the potential start of a bull market. This 1.5 reading on a 10 day average would show an OVERSOLD condition which we have not reached just yet. Give it another 2,000 or 3,000 points on the DJIA (to the 5,000 - 6,000 range) and we may get the kind of reversal you are talking about. ... a few more weeks! Also, if you look at the long term chart quote.yahoo.com^STI.N&d=mym , you will notice that the current range is very small compared to the wide swings of 1987. Not to worry: we are in a bear market and there is no bull around the corner just yet. Have a very nice day. Pierre