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

To: Judy who wrote (16876)	10/22/1998 6:21:00 PM
From: dennis michael patterson	Read Replies (3) \| Respond to of 42787

Judy Judy!! Favors for you Jerry Favors Analysis - Thursday, October 22, 1998 8 p.m. Last evening we told you that the Dow could sell off sharply at some point today but that we would not be surprised by some sort of bounce back late in the day which carried the Dow back up by the close. At the lows today the Dow was down almost 100 points. The Dow then bounced back to close up 14.17 . We are now dead center in the time frame when the Cycles call for some sort of short term high.Today's rally places the 5-Day RSI at 88.87, the highest, most overbought reading since Feb. 18. That we are seeing readings this extremely overbought right in the time frame when the Cycles call for a short term high we believe is no mere coincidence. Not only are the cycles calling for a high but the RSI is arguing strongly that some sort of short term high is now way overdue. The wave structure still suggest we should see another rally above 8653 on a print basis. Whether that will occur tomorrow or next week is the question. Any rally above 8563 on a print basis tomorrow morning will signal a test and possible rally above 8653 on a print basis before the short term high this week. Also watch the December S&P futures as any rally above 1092.50 will suggest a probable rally above 8653 on a print basis in the Dow. Any decline below 8527.73 on a print basis in the first full hour of trading Friday will signal some further pullback and could lead to a test of 8422.17. If 8422.17 is broken tomorrow it will be a signal of lower prices. The Gann 3-Day Chart will turn down tomorrow if the Dow falls below today's intraday low. If it does turn down it would be a signal that the short term high due in this time frame is probably in. Since last week we have told you that we expected the Dow to continue up to a short term high near October 22 plus or minus a day or two. We are there now. We still expect 1 more rally above 8653 but after that rally short term traders should be preparing now to take a short position. The decline may only last a couple of days,since the Cycles and the Bradley call for a short term low near October 28 plus or minus 2 days.But the decline could well prove to be fairly strong one,worth trading very short term. If we see evidence of a low near October 28 we will reverse position and take all subscribers back to the long side short term. If we do go long we may not hold that position very long. We could remain long anywhere from a few days to as long as November 25. It depends on what the indicators are saying after next week's low.Short term option traders we may take a short position,that is long OEX puts,if we get another rally above 8653 tomorrow. We wil give you all new instructions tomorrow afternoon at 12:30.