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

To: Moominoid who wrote (2046)	12/16/1998 10:09:00 AM
From: HighTech	Read Replies (1) \| Respond to of 99985

Looking at the daily chart in IBD at the Dow, it has broken the head and shoulders neckline to the downside and is now forming a downtrending "bullish" flag. Because the volume has not decreased during this flag, it is suspect and might be the start of a new downtrend. WJO's comments about the Dow in today's market page in IBD says it is forming a cup-and-handle formation and mentions that it is preferrable to see low volume during this "handle" formation. Because internals are still weakening and the high volume during the formation of this flag (handle), caution should be considered before adding to long positions. It would be safer to wait for a high-volume breakout one way or the other before initiating new longs or shorts. I am scaling out until the first of next year. HiTech

To: Moominoid who wrote (2046)	12/16/1998 11:08:00 AM
From: donald sew	Read Replies (2) \| Respond to of 99985

David, >>>> AMZN is out of this World...........But I am still bearish looking at fundamentals and my charts.<<<<<<<<<<<<<< Take a look at the DOT(INTERNET INDEX), and it is obvious that it is no where near its highs of 450, although AMZN is setting new highs. This implies that there are now fewer INTERNET stocks participating t, so the participation in the rally in the internets are also narrowing. Narrow rallies in the major indexes, and now a narrow rally in the internet sector - sounds like a pattern here. I had mentioned several weeks ago, that I have done limited research in MANIC trends, and came to a conclusion that once the manic momentum in the internets peak - within 1 year they lose at least 50% of their value, and some could lose most of their gains. Such even applies to the good ones. The question is when is the peak, and I am starting to get the the feeling the peak is in when the DOW hit 450. The analysts say that the internets are here to stay, and thats true, just like TULIPs, TRADING COMPANIES which had their manic periods several hundred years ago. More recent examples of manic buying are the BIOTECHs in the 1970's, IOMEGA and NETSCAPE around 1996. Seeya