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

To: Timothy Liu who wrote (3447)	1/7/1999 7:26:00 PM
From: StockOperator	Read Replies (1) \| Respond to of 99985

My opinion for the night. After the huge market move yesterday it was to be expected that today we'd see some kind of correction. The day after a big move in stocks can tell you much about the strength of the market. Despite being down most of the day the smart money came in at their usual time (2:00-3:00pm) to show which direction they plan on taking us. To me this is the most dangerous time to be long the market. With the averages breaking into new territory or breaking out of resistance levels it is the ideal time for the averages to make a quick about face and catch the longs on the wrong side. Bullish sentiment amongst the public is very high right now. Which is usually a negative for the market. We have what appears to be a blowoff in some of the internets. AMZN and YHOO have been ridiculous the last couple of days. Which to my surprise AOL has not participated. So its fair to say that these are definitely tricky times. But yet after looking at the charts, imo, it appears that tomorrow we're going to see another push into higher highs for all the major averages. The DOW, RUT, Trans. and S&P are all positioned for another run. Look at the individual charts of some of the companies that make up those averages: Merck, Chase Man. (huge day today), United Air., GM (on a tear) AT&T and MO all ready to roll. Those 2nd tier internet companies that I mentioned the other day have already either started their moves or are getting ready to pop. ONSL jumped today from $42.0 to $55.0. Another one to keep a eye on is MZON, remember this one? It went from $9.0 to $59.0 in TWO DAYS - two weeks ago. Today its at 19 and change and ready to pop. Besides AOL, which still looks bullish but hasn't done anything yet. AMEN, BAMM, CNKT, NAVR - have been quiet lately, but only a few months ago were all over CNBC. Many of the micro-cap stocks that I follow are showing improved strength with volume building. So I'm optimistic. Breadth looks like its really trying to expand. Which makes for a much healthier rally. I will be on the lookout for any divergences or signs of a reversal. Of course this is only MY opinion. Only the market knows. Have a great night and profitable trading. SO