To: donald sew who wrote (5794 ) 2/8/1999 10:58:00 PM From: HairBall Respond to
Donald: I-35 ROAD KILL TRADING SYSTEM – UPDATE OKI DOKI FORMATIONS (I-35 Road Kill near Oklahoma formations.)DJI 60-Minute Interval Semi-Log Chart: Reveals the water themes park, dead squid formation, which portends a hook and drop in the AM. TRAN 60-Minute Interval Semi-Log Chart: Reveals the double humping porno formation, which needs the deflated silicon boob formation to confirm. UTIL 60-Minute Interval Semi-Log Chart: Reveals the Texas Sidewinder steel belted radial tenderized cooked in the noon sun trend line. RUT 60-Minute Interval Semi-Log Chart: Reveals the coughing frog, screaming lizard candlestick, which need confirmation in the morning by the dead cat hairball reversal.END OF DAY ANALYSIS (Closing Prices for Monday 2/8/99)cp-tel.net IND (Dow Industrials Theoretical) Price action is still contained in the upper channel of the longer term Andrews Pitchfork (dark purple tines) and the Bullish Flag (dark blue trend lines) which could also be considered a Falling Wedge using the upper tine for the descending trend line. The NYSE Adv/Dec Osc gave a sell signal last Thur. The Sht/Med Term Osc is nearing a short-term sell signal, it would take a very strong move to the upside to prevent one from occurring. The Med/Lng Term Osc is still working at a rolling over and giving a medium/long term sell signal. Which would portend at least an extended flat period or most likely a correction.TRAN (Dow Transports Theoretical) Price action is still contained in the Bullish Flag. The Sht/Med Osc is working at rolling over and is revealing a possible short-term sell signal soon.UTIL (Dow Utilities Theoretical) Price action found support at a long term ascending support trend line on Friday. It closed back above its 200 day SMA today. I suspect it will trade in this area for a day or three before heading back down to test that trend line again. The Sht/Med Osc may give a short-term by signal soon and would support the longer-term trend line for a day or three. However, the Med/Lng Osc is in a sell signal and most likely after a consolidation the Utilities will head lower medium term. If the longer term supporting trend line s broken significantly this could well mean a larger breakdown of the Indice.COMPX (NASDAQ Composite) Price action kept the Indice below the previous rising trading channels lower band. I suspect this means a further correction is in the works. The NAZ Adv/Dec Osc has been in the lower range of the Osc pattern for several days. And, the Sht/Med Osc is in a short-term sell signal and approaching a medium sell signal. I suspect the Indice may trade in a sideways pattern for a day or two before beginning follow through to the down side.RUT (Russell 2000) The Sht/Med Osc is in both a short and medium term sell signal. However, the Indice continued to find support in the price area of its 50 and 200 Day SMA and the lower band of the long term trading envelope. This is strong support. If the price action breaks below this support area, this would portend the possibility of a significant move down.End of Day Conclusion: I suspect the Market as measured by the IND is preparing to retest the lower support line of the Bullish Flag/Falling Wedge. (lower dark blue trend line) This will move facilitate the resolution of Donald's bearish flag/rising wedge. In order for this to happen, a move below the 50 Day SMA and another penetration of the long term trading envelope will have to occur. If a resolution to the norm of the Bullish Flag/Falling Wedge formation does not occur within the next week or two, I suspect the Bullish Flag/Falling Wedge formation may be negated. A significant break below the lower descending trend line would portend a possible reversal of the rally in effect off the Oct 8 low.INTRADAY ANALYSIS DJI (Dow Industrials Actual) Price action today broke below the lower ascending trend line of Donald's Bearish Flag. I believe the formation is a rising wedge, but both are bearish formations and portend the same results with a break to the norm being down. To complete the formation a decline below the first point of the lower ascending trend line, approximately 9063 is necessary. To view the upper ascending trend line, connect the highs of 1/27 and 2/1 and extend to the right. To view the lower ascending trend line, connect the lows of 1/25 and 2/2 and extend to the right. This formation is contained within a larger falling wedge/bullish flag pattern and the larger falling pitchfork's upper channel. (See End of Day Charts to view.)TRAN (Dow Transports Actual) I see a megaphone formation, but this is a formation I do not use. So I will leave it to others to interpret.UTIL, COMPX, RUT I do not see any formations that I would recognize at this time.Note: As almost always, I will defer to Donald's shorter term “Guitar” for the day to day expectations.
