Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James F. Hopkins who wrote (4352)	1/20/1999 6:28:00 PM
From: donald sew	Read Replies (4) \| Respond to of 99985

INDEX UPDATE ================================= Firstly I want to thank all for nice posts,PM's, EMAILs which I have received recently. I apologise for not being able to respond to them individually, since my time has been short. I will still post but only at critical times. At today's highs I actually received a CLASS 2 SELL signal on the NAZ, SPX, OEX, RUT but not the DOW. As I have always stated, the BUY-in time is the highs of the next day. However the overall market sold off, with the DOW closing about 140 points off its highs. In a strong market, reversals start only on CLASS 1 SIGNALs not CLASS 2. I have also mentioned often that statistically, when my signals are on time the pullback is on time, when late the move is weak, and when its early the move is strong. If today's highs were the top, I then will conclude that this forthcoming pullback will be strong since it was early and did not even get to a CLASS 1 level. So if the market does start to move up tomorrow and surpass todays highs at 9480 in a few days, then I will conclude that the pullback is in the process. Many say that a pullback starts on the first down day, but my position is different and it is based on the intraday highs, so the first few days of the pullback could be just a short flat period zig-zagging back and forth before the strong selling starts. So if 9480 is not taken out soon to the upside, the pullback is in process and the stronger selling should occur around FRI/MON/TUE. The WEDGE & PITCHFORK formations are still containing the DOW, but the DOW is sitting dangerously on the LOW TRENDLINE of the WEDGE, and if the DOW goes negative tomorrow it could break it again to the downside. Not a good sign. INTERNETS are now showing weakness. In the past I have mentioned parabolic spikes. AMZN and YHOO started there parabolic spikes near the beginning of JAN, and both have given up most of their gains from this spike already. Didnt have to wait too long. This confirms that they were spikes and not a strong movement to a higher plateau to form a base to continue up further. In other words, I believe these spikes are confirmation signals that the end is near for the internets, which I also believe is a warning signal for the overall market. I am starting to believe that the recent runup to 9650 may have been the mid/longer-term top, and suggest strong caution for the long side. We often hear strong opinions that the market is heading up strong or down. I never believed that such approach is wise, but that good traders should watch for signals daily for clues. So I am not saying that the amrket cannot head up for sure, but will say that I am getting more and more signals that the TOP may have been set at 9650 for the mid-term. I frown on strong opinions especially from analysts, since I am very cynical and believe that the analysts are just trying to manipulate the market. Im still hearing alot of upgrades - typical PUMP and DUMP routine in the process. I could be wrong, but, again, I am cynical towards analysts and those who have strong opinions, which are those who normally have the loudest mouths until they are wrong. Seeya