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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: robnhood who wrote (959)	12/8/1998 7:13:00 PM
From: Lucretius	Respond to of 99985

Thread: some things to consider... (we don't need to wade into fundamentals cause we all know those don't matter anymore): 1. US Dollar looks to have almost finished a H&S pattern. Next stop should be new lows, thus taking the stock mkt (this is key!) AND the bond mkt w/ it. Buy gold or the Yen or D-Mark. Gold looks to be forming the opposite of the patterns discussed below. Gold should take off BEFORE the dollar breaks, IMO. 2. INDU and SPX look to have completed L-T double tops and S-T H&S patterns 3. NDX and MSH look to have finished parabolic moves w/ a key reversal day. (what can I say about these... beyond Tulip) 4. Bovespa looks to have completed a H&S as of today on its 3 month bounce similar to G and NKE (and just about every other stock that isn't tech) discussed below. My Leading Indicators: 5. NKE broke down out of a H&S pattern last week and then "crashed" straight down (NKE has lead the mkt by about a week for the yr of 1998) Keep in mind though the really fun part of the "CRASH" (if there is one) will be when NKE closes below 30. what it does from there should tell us alot about where the mkt is headed. If it bombs. Expect a haircut in the mkt or as I like to call it... a CRASH! NKE bounced today, but kicked rt off resistance, and looks to head back down again from a bear flag. If that move takes us below 31 to 30. My scenario for the overall mkt will become that much more real, IMO. 6. G started crashing today out of a simliar pattern. (G has also lead the mkt this year) Again, the fun part should be when G closes below 35 and should telegraph by a couple days a crash in the overall mkt. Nothin but air below. My guess is, IMPLOSION comin soon. Don't get caught watching the paint dry! good luck! -Lucretius