Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Brad Bolen who wrote (31779)	10/16/1998 9:00:00 AM
From: bearshark	Read Replies (1) \| Respond to of 94695

Brad: I just posted a note about the FED's action that is very similar to what you said. I think the move was planned at the last meeting. They needed to do it in increments to protect the dollar. Other deals were probably made too--especially with China. We are in one financial world now. I believe Greenspan realizes that the U. S. FED is more than the U. S. central banker. What I will be doing with the various charts is to watch this move for confirmation that the bear market is over in the lesser indices--SOX, OSX, etc. The last high they made was just before the third leg down in these indices. If those highs are broken in this move, profit-taking ensues, and if higher highs are set in the next move, I would consider their bear markets to be over. Likewise, I will watch the majors--especially the TRAN. The TRAN is leading the DJI--it has been since May. The TRAN looks like it has had three legs down. I believe it has to penetrate the 2900 level to start a change in trend. We are a long way off from any final determinations here but there is strength in this market. In one of my earlier notes, I guessed at the lows in the SOX and OSX--185 and 42 respectively. I think that has been achieved or close to it. All of this stuff is very basic Dow Theory of market movements. Normally, three moves in bull and bear markets. There are always opportunities for abnormal patterns too. However, we have so many classic patterns out there now, I just have to go with them until they are proven wrong.