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

To: Moominoid who wrote (3271)	1/4/1999 10:11:00 PM
From: HammerHead	Read Replies (1) \| Respond to of 99985

Rubin said Japan is key in 1999. cnnfn.com And now we see Nikkei going to the toilet since '99. Hmmmmm.... Does anyone know why Taiwan index tank?

To: Moominoid who wrote (3271)	1/4/1999 11:39:00 PM
From: StockOperator	Respond to of 99985

What a crazy day. I was tempted to take the night off and post after tomorrow's close. But where's the fun in that. Posting after a day like today, gives you a great opportunity to show how little you actually know. So I decided to take a shot at it. Today's volatility in the averages leaves the door open for alot of second guessing. After the close, the DOW and NAZ were up while the RUT, TRAN and S&P were down. With the averages either breaking into new highs or trying to breakout of resistance levels, I guess this ride should have been expected. The NAZ, which to no surprise to anyone, was the best performer - CSCO, DELL, MSFT, INTC had decent gains. While in the internet arena YHOO and especially AMZN had a great day. In the blue chips: IBM, MO and GM are all at pretty critical points on their charts and have been actually rolling over slightly. With that said, I still believe today's trading was nothing more than a "fakeout before the breakout." I say that because the internets and high techs look like their on the verge of another move to the upside. Even 2nd tier internet companies that made huge moves several months ago and have been consolidating as of lately appear ready to go along for the ride: CYCH, GMAI, CYSP, CNKT, AMEN, BAMM, INKT, ONSL. Despite the recent drop in CYSP and GMAI, (their chart patterns are almost identical) if this rally in the internets takes place these stocks should all participate in the ride. Another point to make that I think is critical here, is to watch how far these stocks run. Where they run out of gas might give us an idea how close we are to a top in this sector. Of course this is all contingent upon a rally that I might be reading wrong. We'll find out soon enough. I'll be watching these stocks carefully here, if they tank, then maybe IBM and MO are giving a early sign to a new direction in the market. Have a good night. SO