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

To: donald sew who wrote (5535)	2/5/1999 6:32:00 PM
From: StockOperator	Respond to of 99985

Don, My opinion on this next move up, which I do believe we'll get, is that it will be a huge move with broad market participation. I'm not even disapointed with the fall in the RUT which has been one of my key indicators the past two months. If the transports would have collapsed with them that would be another story. However, with their strength and I believe the turn in the utilities, which is still early, the next move up will be towards new highs. Especially on the DOW which will break into record territory. The trannies are also setting themselves up for a breakout. So I do like the way the stars are lining up here. Still, I do believe we are at critical point and if wrong I'll take the appropriate action. Time will tell. Good luck. SO

To: donald sew who wrote (5535)	2/5/1999 7:00:00 PM
From: bobby beara	Read Replies (2) \| Respond to of 99985

Donald, I hope you don't have a lot of muny on it. look at the RSI chart for the daq, from the 1/13 low it made a 2.5 week horizontal coil (symetrical triangle) Lower Highs on the RSI and Higher highs on ALL OF THE INDEXES. Just one more bearish divergence. The tension built up in that 2.5 week coil will not be relieved by a 3 day sell-off. I think we should get down in the 30 area of the 14 day rsi before a bottom. I'm looking for a completed five wave pattern down in the nasdaq before we hit bottom and probably some kind of capitulation selling bottom with 75-90% negative breadth. I could be wrong, but Gort has been advising me closely on the danger that the human race has gotten itself into -ggg- bb