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

To: dennis michael patterson who wrote (2579)	12/22/1998 11:10:00 AM
From: Ms. X	Read Replies (1) \| Respond to of 99985

It's kind of like that game people play when one whispers a story into one ear and they pass the story on and on and when it finally is spoken after being translated by 20 or more, the story is completely distorted. PnFers are not bearish. What we have is a reversal down at the 60% level with our big indicator suggesting pullbacks in the market. Pullbacks in the market as I have stated 500,000 times does not mean necessarily pullbacks in the Dow. We had the same indicator turn in May (that point it was at a higher level and more risky) suggesting pullbacks in the market (which happened) but the Dow continued to new highs. The Dow is 30 stocks but most portfolio's do not carry just the Dow. It was the large caps that were continuing to climb while mid to small were floundering. Same thing is happening now. More stocks are breaking areas of support than those breaking areas of resistance. If you own the large cap issues that are outperforming (from what I read of you posts DMP, you do) you are quite happy - but others may not be seeing the same happiness in their portfolio. Yadda yadda. With the sector distribution in "normal" territory and the reversal coming below 70%, we suggest caution and buying on pullbacks. This is not bearish but cautious. We are buying large cap - out performers for trades but will watch for a turn as they are extended. Now is good time for trading. For longer term investment entries, best to wait for pullbacks. ya ya?