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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Bald Eagle who wrote (15507)	10/8/1998 12:25:00 AM
From: E. Graphs	Read Replies (1) \| Respond to of 25814

Bald Eagle, I don't know if you follow charts/TA or not, but this is the best I can do. Looking at the big picture, we could be in for a wild ride, yet. Lots of opportunity to trade, perhaps followed by a huge decline.......then probably more bull market. exchange2000.com If the above post holds true [and so far it has]: Gold (XAU) has now broken through first [very important to me] resistance at ~80, and is headed towards the next level of resistance at ~94; this is where I think it will run into trouble and retrace, especially if the market somehow manages to get frothy and confident once again. (Later, if/when the neckline fails to hold if tested, there could be a move to either ~6000 or ~4000, and gold will move back to and probably break, or will have broken R94...a wild guess) Naz and Dow could rally HUGE if we rally now, because we've had our chance to break the neckline (Naz) today, and we did not.....perhaps tomorrow!? Just to explain what I see......IMHO, we are maybe not at the bottom.....we are at the neckline of a Head and Shoulders Top formation [no respectable right shoulder, yet, but as I said in that other post, they don't always form (in which case look out below!)]. The neckline is at ~1432. Necklines feel a lot like bottoms, because they are exhaustive [most of the stronger stocks in the index will move to their individual supports and appear weak......while the truly weaker issues break down all together (I always try to change horses in this case!!! because typically the ensuing rally will be best for the truly strong issues..........while the weak stay down, such as LSI has done, remarkably well]. Necklines are treacherous, because if they break down it is usually freefall-time......very stunning and no fun) IMHO, right now, if the Naz (and Dow for that matter) rally and hold, we will begin to form the right shoulder....which will be the right part of this top formation. H&S Tops do not always break down; we can retest the neckline, but they can prove to be strong areas of support. Right shoulders can just go on forming for a long time (just take a look at the Intel chart!!!) It's been on hold for a long time, but something is going to give, soon. quote.yahoo.com Also, notice on KO, the H&S held at the neckline and then the stock made a great advance, only to come back and retest! It's amazing when you can see what is happening technically regarding the market....you lose a lot of blind fear and better recognize your risk. If the Dow goes to ~4000 it would probably be the bottom/support of the long term trend. And, there are alot of reasons we can go there. For one, I don't think AG would mind! [he had a thing about irrational exuberance, and imho we have only begun to take it out]. But, Shane says 6000 is enough, so who knows, maybe it is.....if the market is strong we could bounce at ~4500. All just my own observations; things can change and go a completely different way, but this is how it seems likely to go, considering a lot of things. My time frame still seems reasonable to me, and we could have some great opportunities to trade the right shoulder[s] which are likely to form, before any big dip, unless we break the neckline right now, and start diving. If I'm wrong I'll feel like an idiot! <gg> (but, I myself am trying to work up some cash for any such possibility, because the ensuing rally from ~4500/6000 will have less friction than a long term move up from here) Good Luck! E