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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (19009)	1/23/1999 5:11:00 PM
From: bobby beara	Respond to of 42787

Sonki, a H&S pattern is a distribution pattern that looks the the head and shoulders of a man on a chart. They are normally bearish, however in a strong bull market they usually fail and behave as continuation patterns. The OEX from april to august is a pattern that produced the bearish result. The larger pattern in the Dow from August 97 to October 98 was an example of a failed head and shoulders pattern. When they fail they go the other way lickety split. The Dow now has the evidence of a failed inverted head and shoulders pattern. When we crossed to new highs in the first week of January everybody got really bullish and started pouring money hand over fist into everything that was going up producing a tech and internutz blow-off top. Have you noticed that we have had consistent volume in the nasdaq over 1 billion shares. This is a symptom of a turning point, a significant uptick in volume at the end of a long trend. Another failed inverted H&S pattern is now developing in the XAL. I actually believe the top is in and the patterns developing now in many indexes will be fulfulled in the bearish mode. I believe it will be easier to make money on the short side from here to July, but you could make some short term long trades. I think we may see a bottom of this current correction on Monday or Tuesday. IBM might be a good long trade if it got really oversold, but MSFT will probably be the stock to be long at any turning point bottoms. some interesting charts: home.earthlink.net bb