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

To: Compadre who wrote (9599)	3/31/1999 7:05:00 PM
From: J. P.	Respond to of 99985

Good advice, thanks.

To: Compadre who wrote (9599)	3/31/1999 11:00:00 PM
From: StockOperator	Read Replies (2) \| Respond to of 99985

Jaime, The best way to play this is just let the market tell you where it is going rather than anticipating the move. Just be patient and the market will tell you when it is ready to come down. I couldn't agree with your statement more. I think your advice should be taken seriously during all phases of the market. Regardless of whether or not it's advancing, declining or just going sideways. I have looked at many charts over the years and I've found that prior to almost every advance or decline the market left clues to those impending moves. Granted some may have been very short and the window to act very small. But nevertheless the clues were there. Of course everything is premised off of good-solid TA. And although your ability to do so will most likely put you in a place where you are anticipating a move. It's waiting for that definitive sign by the market that will often prevent you from being whipsawed out of your position. Regards, SO

To: Compadre who wrote (9599)	4/1/1999 6:28:00 PM
From: J. P.	Read Replies (1) \| Respond to of 99985

Out of the last 6 cycles the market has dropped through selloffs to the 200 dma. Only the one time you mentioned did the market go sideways until the 200 dma was hit. I personally believe there is a higher probability that we will selloff to the 200 dma, since that was the case 5 out of the last 6 nine month cycles. We have the fundamentals to support that belief also, the weak a/d line, multiples historically high, slowing earnings growth, entering traditionaly weak quarters, not to mention the little war we have brewing. Will be interesting and hopefully profitable to see how it plays out.