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To: HairBall who wrote (56317)	10/25/1998 10:05:00 PM
From: ViperChick Secret Agent 006.9	Read Replies (2) \| Respond to of 58727

okay for those that still muddle through that print, theoretical business on the Dow..here is a little exchange from LG and Jim ..... if you are looking at favors..use his definition...although I still dont know who is right and who is wrong ;-))))PPPPP I guess it would have to be Dow Jones that is right... Message 6157125 Message 6157381 Message 6157410 To: +Judy (16936 ) From: +dennis michael patterson Sunday, Oct 25 1998 4:05PM ET Reply # of 16952 Judy: Favors is looking to go long, soon I think! Jerry Favors Analysis - Sunday, October 25, 1998 7 p.m. The Dow on Friday was down as much as 106 points. We bounced back to close down 81.10 at 8452.04. We told you on Sunday October 18 that the Dow would encounter resistance to any rally last week up near 8700. The Dow reached an intraday high last week of 8713 and a print high of 8652.86 .The Dow has since fallen 230 points to a print low of 8422.43 on October 22. On Friday October 23 the Dow reached a print low of 8426.81. If the Dow on Friday had fallen below 8422.17 on a print basis and 8334 intraday the Gann 3-Day Chart would have turned down. However those support levels were not broken on Friday,even though we got very close. But as of now the 3-Day Chart is still pointing up.This suggests we could still see some further rally early this week before the decline truly gets underway.The wave structure suggests we could be in a 4th wave here with a final 5th wave rally above 8653 early this week before we really begin to plunge.Any rally early Monday above 8506 on a print basis will signal higher prices and could lead to a test or rally above 8653 before we really begin to plunge this week.If this occurred it would not alter our position about a decline this week. It would just mean the rally off the October 8 lows is topping out short term. A decline below 8426 on a print basis early Monday morning would be short term bearish and signal lower prices immediately.But unless that decline carried the Dow significantly lower the same day we could see a reversal above 8506 and begin another rally above 8653 on a print basis.If so that rally would complete 5 waves up from the October 8 low and be followed by a sharp decline into late next week. The minimum decline we would expect if this scenario proved correct is a decline of 300 points on a print basis or more below the peak of any rally above 8653 early this week. There would be resistance to any very strong rally this week near 8840 intraday. Current projections call for a high near 8801 plus or minus 140 points intraday. The minimum of that target has already been satisfied at last week's high of 8713 intraday. Any decline below 8321.50 intraday in the Dow this week will turn the Weekly Chart down and that would be a stronger signal of still lower prices. Any decline below 1059.50 in the December S&P futures this week will be an early signal of a probable decline below 8321.50 intraday in the Dow. Short term traders,by which we mean option traders,if the Dow exceeds 8506 on a print basis go long with a stop of 8422 or 1 point below Monday's print low,whichever is lower. If executed we would sell longs at 8639 or check the Short Term Traders Hotline Monday afternoon for new instructions. However remember the 900 Short Term Traders Line is $2.00 per minute. Stock traders and mutual fund switchers we still expect a low this week and then a rally to higher levels. We will give a Buy Signal when we think that low is in. Next Previous