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

To: StockOperator who wrote (12392)	4/29/1999 12:08:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

SO, re:CAT,IP they may be shorts based on near term correction potential. but let me point out that CAT and IP are two of only a handful of stocks sporting higher put than call open interest, which will likely put a floor under any decline. of course, should the market as a whole suffer a setback, they will sell off as well. even so the high p/e stocks would probably make for more promising short candidates, as they are 'crowded trades'(i.e. everybody is in them and they may well try to head for the exits all at once). this cannot yet be said of the cyclicals since their advance has been greeted with a lot of skepticism.see optionsource.com for details. regards, hb

To: StockOperator who wrote (12392)	4/29/1999 12:20:00 PM
From: Compadre	Read Replies (1) \| Respond to of 99985

SO: I have been looking at the NAZ closely, specifically the W%R and MACD indicators. W%R (34 days) gave a intermediate term sell signal yesterday. An MACD crossing sell signal happened about an hour ago. With Stochastics in the middle, it is set up for a big fall. Today is the third day of the fall, and I expect to see some rebound either tomorrow or Monday. But this rebound may be for only one day. The other index that is doing badly is the SOX. That also has an intermediate term Sell (W%R), and it looks far worse that the NAZ. As it was unable to break through to get a new high. Now it looks as the inverted head and shoulder pattern is breaking down to the down side. I am afraid that we have seen the top for the NAZ 3 days ago. At least for a while. My trading system is still in a sell mode, but the OEX and SPX are getting close to being buys. Regards, Jaime