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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (16612)	10/13/1998 2:16:00 PM
From: dennis michael patterson	Respond to of 42787

Beebs: I suspect he does not know either. I just think we're at 8100 again and the bulls just won't put up. So down we go. Slowly, but down.

To: The Perfect Hedge who wrote (16612)	10/13/1998 7:27:00 PM
From: dennis michael patterson	Respond to of 42787

Beebs: here's my quid pro quo: Jerry Favors Analysis - Tuesday, October 13, 1998 8 p.m. The Dow was unable to muster any serious rally today and at the lows the Dow was down as much as 116.88 points. We then bounced back to close down 65.13. While the Dow sold off today we are not convinced this week's rally is over quite yet. As long as the Dow holds above 7800 we believe we could still see some further rally this week before the top. Now we must be careful as the Trin-5 appears to have bottomed at 3.84 yesterday. This is a strong indication that we are near some sort of high. If we combine this with the fact that the Dow rallied up to within 20 points of its 21-Day 3 1/2% Exponential Trading Band yesterday it becomes an even stronger argument that we are near some sort of high. The Dow normally reaches some sort of high when it rallies up near or just above the top of that band. The top of the band on Monday was 8182 and the Dow reached an intraday high of 8162 Monday. We could rally back up near the band again this week but there will be very strong resistance in that area. The 10-day Trading index is still mildly oversold at 1.11,but the takeaway value tomorrow is a strong 2.82,so the odds are unless the Dow closes down very strongly the 10-Day Trin will move out of oversold territory entirely tomorrow. This will remove another of the props that has been holding this market up the last few days. The 3-Day Chart is still up and could not turn down before Thursday at the earliest. A decline below 7884 on a print basis tomorrow morning would signal a stronger decline. A rally above 8008 on a print basis tomorrow morning would give a short term Buy Signal off the hourly charts but it would only remain valid as long as the Dow holds above 7884,or tomorrow morning's print low,whichever is lower. Watch the Dec S&P futures as a rally there above 1008.50 will suggest a test of 8008 in the Dow. Short term traders we want to go short this week but not until we are convinced the rally has peaked. We are not convinced of that just yet.