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

To: HairBall who wrote (3364)	1/7/1999 12:20:00 AM
From: Art C.	Read Replies (1) \| Respond to of 99985

You are correct on that, LG. I wouldn't bet the farm on a pattern. Sometimes wishful thinking can paint pretty pictures. I'm having a little trouble seeing a reverse head and shoulders on the chart. I don't believe that the market has been in enough of a downtrend to constitute a head and shoulders, plus---usually volume tends to diminish during the creation of the shoulders--I don't see that either. What I do see, though, is that the market is getting close to the overbought area, and there is a negative divergence with MACD--both weekly and daily. Who knows? There's a lot of money pouring into the market right now. Art

To: HairBall who wrote (3364)	1/7/1999 12:27:00 AM
From: j g cordes	Read Replies (1) \| Respond to of 99985

The whole point of being a trader is to try and capitalize on predictability. A chart is a tool which looses its edge when too many rely on it. Everyone says... "hey, look.. its a double top, time to sell and go short." But from that predictable top the markets leap to higher highs, just to squeeze the shorts when they can best be squeezed. Then when it looks like we're on our way to even higer highs support fails, puts and shorts do well, because that's where the easiest money is made.