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

To: j g cordes who wrote (11338)	4/18/1999 9:32:00 AM
From: HairBall	Read Replies (1) \| Respond to of 99985

j g cordes: Interesting read. My take is this has been going on in the Markets for years, long before the advent of the "new era" individual investors. However, the "new era" trader/investor is linked up to the internet affording access to vast amounts of research/services with brokerages offering instant trading <gg> coupled with computer investment analysis programs both real time and end of day. Speculation in the Markets has gone on since the beginning, but now it takes place in a much more compressed time frame. But in the end, even the "new era" investors will succumb to historical values of the Market. To All: I updated my charts early this weekend. I finally have my historical database working with histories going back to 1970 on many Indices and any stocks that go back that far. I have prepared two new charts for you viewing pleasure...<g> They include the Dow 30 Industrials Theoretical and 30-Year T-Bond Index on one chart with a Weekly Semi-Log view. I have identified a descending trading channel for the TYX and a ascending trading channel for the DJI. Look at the wider view before going to the close up view. This will allow you to identify the trend lines before looking at them close up. The Market as measured by the DJI has penetrated the upper ascending trading channel established at the 1987 highs. Is the Market as measure by the DJI breaking out or it will pull back? Note that in 1987 when the DJI topped it had been rising in the face of a rising TYX for almost two years. The DJI has been rising since the Oct 98 lows in the face of a rising TYX of that same month. I believe the Market as measured by the DJI is at a decision point...place your bets...<g> EDIT: Note that the rise by the DJI last April-July ran up against the upper ascending line of the long term rising trading channel. This rise was somewhat supported by a falling TYX. The DJI did pull back from that trend line resulting in the correction last July. My charts can be viewed at the MDA Web Site at: homestead.com Regards, LG Disclaimer: My posts are my opinions only and I reserve the right to be wrong on occasion. Do not base any investment decision solely on anyone's views or analysis. Do your own research and take responsibility for your own investment decisions.