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

To: Gersh Avery who wrote (33128)	11/6/1998 12:20:00 AM
From: Vitas	Read Replies (1) \| Respond to of 94695

Gersh, your mission is to explain the significance of this m2 thing (gawd, I hope its not a reference to some kind of bee-mer ) Vitas --------------------------------------------------------------------------------------- >Hotline > >This is Dennis Slothower with the On the Money Newsletter Hotline Update for >Thursday, Nov 5. > >SUMMARY OF RECOMMENDATIONS: > >Investors need to be fully invested right now. > >MARKET COMMENTARY: > >Stocks surged in the final hour of trading today sending the market soaring >to new session highs and confounding the experts who expected a market >pause. > >Alan Greenspan gave a speech early this afternoon where he noted that recent >market action is apparently making investors less frightened and confidence >is returning. The stock market rallied on his comments for the rest of the >day. > >Truly it has been a time to put "hay in the barn" but it is also important >to note that we really are seeing a very unusual anomaly. >Can you remember a time when the S&P 500 lost nearly 20% in a six-week >period and then recovered almost all of it in another six-week period? > >I challenge you to find any other period where the market has acted like >this. Not in 1987, not in 1990 and not in 1929. Why is the market acting so >powerfully to the upside? > >I believe the answer lies in the fact that the Federal Reserve has so >steeply "zoomed" the money supply with M2 now growing at 13%. This is an >enormous of amount of liquidity. > >Consequently, momentum will not be easily displaced. Each correction has >been quickly used as a buying opportunity and this is likely to be the case >for the balance of the year as long as the Fed is in an easing mode. > >Stay invested or get long if you are sitting on the sidelines. > >STOCKS: > >The Dow rose +132.4 today to close at 8915.5 The OTC rose 13.5 to close at >1837.1. > >Advancers beat decliners 1,783 to 1,256 > >BONDS: > >Bonds rose 04/32 and closed at 126 25/32nds. > >GOLD: > >Gold rose 3.1 and closed at 294.0 > >TECHNICAL INDICATORS > >1. STOCHASTICS > > STOCKS BONDS GOLD BULLION > >SHORT CYCLES=10 to 14 DAYS > >DJI %K 64 %D 48 Positive * %K 29 %D 48 Neg. * %K 54 %D 36 Pos. >OTC %K 65 %D 73 Negative >NYSE %K 77 %D 65 Positive >S&P %K 73 %D 61 Positive > >INTERMEDIATE CYCLES=3 to 5 MONTHS > >DJI %K 92 %D 73 Positive * %K 14 %D 39 Neg. * %K 69 %D 80 Neg. >OTC %K 83 %D 60 Positive >NYSE %K 91 %D 72 Positive >S&P %K 91 %D 71 Positive > >LONG TERM CYCLES=40 MONTHS > >DJI %K 20 %D 23 Negative * %K 83 %D 81 Pos. * %K 20 %D 17 Pos. >OTC %K 21 %D 32 Negative >NYSE %K 20 %D 31 Negative >S&P %K 25 %D 36 Negative > >2. BREADTH INDICATORS > >NEW LOWS INDICATOR > > 10/26 10/27 10/28 10/29 10/30 11/2 11/3 11/4 >NYSE 29 34 22 33 25 17 15 14 >OTC 51 33 54 34 25 22 23 31 > >Courtesy of Investors FastTrack:P.O Box 77577, Baton Rouge, LA 70879 > >McCLELLAN OSCILLATOR AND SUMMATION INDEX INDICATOR- > >Oscillator: (Difference between a 5% and 10% trend of the advance/decline >line) Generally speaking, this indicator is bullish when positive and >bearish when negative. A reading of -100 is considered oversold whereas a >+100 is considered overbought. > >Index: Is the Sum of all previous McClellan Oscillator Values: It changes >each day by the amount of the McClellan Oscillator. >Index Values: > >+1500 and rising is bullish. >+1500 to +1000 is neutral. >Below +1000 and falling is bearish. > > 10/28 10/29 10/30 11/2 11/3 11/4 > NYSE: OSC: +141 +160 +207 +253 +226 +245 > INDEX: +166 +327 +533 +787 +1013 +1258 > >OTC: OSC: +287 +296 +312 +335 +298 +308 > INDEX: -2104 -1808 -1496 -1161 -864 -556 > > >Courtesy of Fast Tools: P.O. Box F, Santa Clara, CA. 95055-F > >*** Fidelity Select Money Market ranks 39 out of 39 funds, and is >dead last of all sector funds currently which is extremely bullish. When >2/3rds of all sector funds are outperforming the select money market, the >market trend is healthy. When the select money market fund is outperforming >2/3rds of all sector funds, the market trend is considered negative and >highly risky. This ranking is over a six-week period. > >Courtesy of FastRUBE: P.O. Box 1424, Goodlettsville, TN 37070-1424