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To: donald sew who wrote (56272)	10/25/1998 12:37:00 AM
From: Magnatizer	Read Replies (1) \| Respond to of 58727

Market Magnets and Thoughts Message 6151970 ht david

To: donald sew who wrote (56272)	10/25/1998 1:46:00 AM
From: Gersh Avery	Read Replies (1) \| Respond to of 58727

Hi don .. Some of my current observations. The week that we just went through was very important for the folks who are 401k holders. Many of these got a set of very bad news in the mail and it was the first time in a long while that they may have felt that looking at the market might be a good thing to do. It was very nice that Mr. market was trending up while they were deciding what to do with the bad news. The market action served to reinforce the concept that the market goes both down and up and that to watch too closely just causes lack of sleep. The market is poised on somewhat of a knife edge this weekend. A ~61% retraction from a major bottom is supposed to be the mark of a bear market bounce and we seem to be at that point right now. In addition many of the indexes are right at their 200 day average. (Which is now serving as a major point of resistance<g>.) My S&P numbers that I've been watching, for a while now, gave me a long term buy signal Friday. That signal being the 20day sma line crossed the 50day. If we see some strong pullback for a couple of days that signal could reverse. Anyway .. it was very interesting to see your indicators get to a midrange with only one mildly negative day. Seems that the main pullback to get us to that point was the day that we dropped >200 from the high of the day. Durations .. we had 7 days up and one day down so far. This is the reverse from a few weeks ago when the down movements came before you expected them to and lasted longer than you thought they would. Friday trends .. Bill H on the BK thread pointed out a while back that during a bull market Fridays had a likelihood of pullback and during a bear Fridays had a likelihood of pullup. I would guess that would be because of traders not wishing to hold over the weekend .. either long or short depending on the type of market we were in at the time. So .. anyway .. we seem to be at one of those times. Are we about to bounce back from the 200 day lines or have we been setting a basing pattern the last three days for the next move up? I still think up .. but then I have been known to be explosively wrong before<g>. Gersh