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

To: bearshark who wrote (10991)	4/14/1999 1:58:00 PM
From: donald sew	Respond to of 99985

Bearshark, I checked the market internals and they are still healthy. seeya

To: bearshark who wrote (10991)	4/14/1999 7:30:00 PM
From: bearshark	Read Replies (2) \| Respond to of 99985

A Trader's Market. I think today gives a good example of it. The below figures do not look that bad. On the NYSE, we had advances leading declines and advancing volume leading declining volume. On the NASDAQ, we had advances leading declines. However, declining volume led advancing volume. quote.yahoo.com Four of the leading tradable stocks (INTC, DELL, MSFT, and CSCO) had negative volume of 125 million today. Add to that several tradable internet stocks (EGRP, SEEK, USWB, YHOO, AOL, AMZN, ATHM, CMGI, CYCH, NETA, and SEEK) and we get another 100 million. So these tradable 15 stocks accounted for about 16 percent of the heavy NASDAQ volume. Now take a look at the dullards below--the INDU stocks. quote.yahoo.com Pay attention to the moves--up 6, down 5, up 4, down 4. If I counted correctly there were 15 up and 15 down. Over the last few weeks, non-block money started to buy these INDU stocks. Since the end of December, non-block positive moneyflow on these stocks was about half of block positive moneyflow (5.7 billion vs. 11.9 billion) over the past few weeks non-block and block positive moneyflow was about even at 1.3 billion. Additionally, the INDU stocks, are now out-of-balance with the NYSE. Normally, the INDU stocks will account for about 11 to 12 percent of NYSE volume. For the last several days, they have been accounting for about 14 percent of the NYSE volume. Additionally, the advancing volume for INDU stocks has been about 17 percent for the last five days. In short, the INDU stocks are picking up trading interest. Most of us on SI are trading. I certainly am not investing. Traders are interested in moves. In fact, we thrive on it. Traders expect significant moves such as the 10 percent drop in the DOT today. However, when trading pervades the overall market, there is increased volatility in the overall market. A 10 percent one-day correction, if it ever comes, at these levels would be 1,000 INDU points. I apologize if this makes little sense but I was in a hurry as usual and feeling a bit chatty tonight