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

To: HairBall who wrote (4252)	1/19/1999 9:09:00 PM
From: StockOperator	Read Replies (2) \| Respond to of 99985

I caught part of Joe Granville's interview this morning. You always have to respect his opinion. Although he was bearish and missed much of the bull run. He's made many a brilliant calls over the years. Besides having seen so many different phases of the market in his day. He did make a very good point this morning about the market pulling back after finally breaking through a triple top formation. He's right, the market broke through two weeks ago only to fail and hold that break. Could be negative. However, there is another way to view this action. Anytime a significant pattern is broken, you always like to see that area re-tested before prices continue to rise. Like I mentioned in my last post that the Dow successfully re-tested the 9330 area by holding that price at the end of the week. So although it did break the triple-top, it successfully tested its support. Of course one-week does not make a trend. So I think it makes sense to heed Joe's advice as we watch the trading unfold. I will admit that I'm disappointed by the lack of advance by the other avgs. The NASDAQ is light years ahead of everything else. But yet my style of trading tells me not to question what the chart's are telling me. So here are a few things that happened today: The NASDAQ dictated all day where this market was headed. MSFT, DELL, CSCO, INTC all had huge days. Prices closed at their highs of the day (very bullish). MSFT came out with earnings that blew every estimate out of the water. Tomorrow we should see a huge gap at the open. Watch to see how prices do at the close when the smart money comes in. The DOW, Transports and RUT look like they're poised for a big breakout tomorrow. IBM, GM, (earnings tomorr.), AT&T all performed big today. JNJ and MRK in the drug group are beginning to climb. One bit of bad news for the Dow is MO which is beginning to breakdown. Worth keeping an eye on. Airlines stocks are also beginning to move up, DAL, AMR, U are just a few. DAL posted good earnings today. U will post tomorrow. Some of the banks and brokerages posted earnings but had mixed performances. CMB brokeout today climbing $3.5. The internets definitely were a mixed bag today. Looking at the charts AOL looks ready to go. While YHOO and AMZN have to start climbing here to break out of this consolidation. IMO, this break has to be this week. The NASDAQ making an explosive move without the likes of YHOO, AOL, AMZN would be very bearish for the nutz. The one area of the market that is really beginning to catch fire is the small to micro cap market. These stocks are making huge moves. Companies like ACEC, INSGY, NTN, ANCR have taken off already. Here are a few that are just now beginning to move: VSNR, INTD, HWYM, CICI. Watch their price action the rest of the month. They're climbing. BTW, WARPF which I mentioned in my last post finally broke out of the six month consolidation today. Last week $1.37 today $2.71. So even though I respect Joe's opinion. I have to stay bullish until the charts tell me otherwise. What happens outside of the NASDAQ tomorrow should give us plenty of clues for the direction of this market. Good trading. SO