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

To: Judy who wrote (17820)	11/17/1998 5:43:00 PM
From: dennis michael patterson	Read Replies (1) \| Respond to of 42787

Jerry Favors Analysis - Tuesday, November 17, 1998 8 p.m. At the lows today the Dow was down over 82 points. The Fed after 2:15 decided to cut rates again,and as expected this lead to another short rally in the Dow. The Dow went from down 82 to up 91 points at the highs . We closed down 24.97 for the day at 8986.28 The Fed decided to cut the discount rate by 1/4 or a point and the Fed Funds rate by 1/4 of a point. The Dow went from down 82 points to up 91.But the Dow closed down 24.97.The Nasdaq closed up 16.84,and the NYSE cash index closed up 0.74.The S&P cash closed up 3.46 and the December S&P futures closed up 1.20. But none of the above proves the Dow will rally or decline from here on.We still believe there is significant risk from here . That does not mean the Dow cannot rally strongly tomorrow. It most certainly could. But we are not going to try to trade that rally.We gave you a projection of 9036 plus or minus 163 points intraday,and that projection remains valid.But it does not give us enough room to attempt a trade on the long side and guarantee that there will be enough upside follow through to make it worth our while on the long side. Now nothing will alter our position that we are near some sort of short term correction.That correction may only last a couple of days but it will occur one way or the other. Despite the probability of some sort of correction short term we still look for higher prices into November 25 plus or minus 2 days. Short term any decline below 8929 on a print basis will signal lower prices. However it will not necessarily mean the rally is over.Tomorrow will be an important day one way or the other.For that reason we will put on a 2:45 EST update tomorrow with new instructions for short term traders. Short term traders should have sold longs on the rally above 9011. That means you would have either sold on the open today or on the rally above 9011 this afternoon. We will have new instrcutions for you tomorrow.