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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Allan Harris who wrote (14366)	2/21/1999 2:24:00 PM
From: Jerry Olson	Read Replies (1) \| Respond to of 34816

Hi Allen Bearish??? Me??? ha!! no just waiting patiently for the indicators to do their thing...don't care which way we move...i'll follow those signals...cabooose guy...:>}

To: Allan Harris who wrote (14366)	2/21/1999 3:56:00 PM
From: Gwolf	Respond to of 34816

Allan, we may be ready for a rally S.T., the market is right at a support area and seems to want to hold, but that can change with any kind of news. The thing I'm going to be watching very closely on any rally is the A/D line. This market feels a lot like 1973-74 and 1987. The small caps are always the first to break down anywhere from 6 mos to 2 years in advance of the market, then the next tier breaks down and the next until all that is holding the market up is the current leaders. Each rally sees less and less participation until boom the floor drops out from underneath you. Take a look at the the A/D lines for 1929, 1973-74, 1987 and the current time frame and see if you see anything spooky. decisionpoint.com Then go back and look at the NYSEBP in 1986 you can see that it gave a bear confirmed signal at 44 in Aug/Sep, which only took it to a low of 40 before giving a bull confirmed signal in Dec and continued to rally into March hitting a peak at 76. The rally came from an oversold position and had participation from the market for a while until Feb of 87 and then it started down even though the market rallied. We are getting no participation from the underlying market right now. If we get another rally and the A/D line continues to fail to respond we are in big trouble. Even though the market may appear to be oversold and in a position to bounce I think we are getting closer to the time when the buy the dip crowd may get a real big surprise. I think Tom's article on the magazine article on the team to save the world may be more significant than any of us can imagine right now. I'm not predicting but I am sitting as close to the fire exit as I can and still be able to see the play. Gwolf