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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Dnorman who wrote (2177)	10/17/1998 6:15:00 PM
From: bobby beara	Read Replies (1) \| Respond to of 3339

D. don't follow oil. I think XAU is probing for a bottom here. I would buy any dips here. 68 would be a 50% retracement and could see a short drop to there. Would add to positions, especially if the selling was on well below average volume. XAU is following a similar analog to 93 bottom, if the timing is similar (and the pattern plays out) we should be in the time frame for the bottom of the first major pullback, if we haven't already. One of may favorites DROOY, is right at the pinpoint of a symetrical triangle. The technicals and analog is following the bottoms in 82 and 93 closely. Those bottoms were followed by bull markets that gained 200-300% in xau in 1-2 years. Martin Armstrong hit a bullseye on picking the top of equity markets. We will see in his analysis of the metals. The OEX is sitting on the neckline of the H&S pattern it broke in August. Has support now become resistance? For this rally to continue we should rally up next week or two to 535-540, then retest the neckline @520 to initiate it as support. If we reverse hard next week off this area, we could be in for a double failure of the 520 resistance and may re-initiate the countdown for the Damocles sequence. Interesting to note a high volume day marked the 9/23 peak and we had an nyse billion share day on Friday on a low volitility day. HSI has had a blow-off spike with some big gaps and has acheived the measured move of the triangle formed around the sept base. The 11th anniversary may be a pivotal trading day. With this kind of momentum thrust we had last week, we should continue higher, a reversal would be another sword in the bulls back. bb