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

To: Don Green who wrote (13294)	5/9/1999 10:26:00 AM
From: HairBall	Read Replies (2) \| Respond to of 99985

Don Green: If you follow Technical Analysis.. it will be HUGE, a break of a 17 plus year trend... Well, I don't really follow Technical Analysis...<gg> Don: Of course it would be a major breakdown of the current rally and obviously would have to occur "in my book" before a true Bear Market would take hold. Take a look at the much larger picture...look at the rising trend line of the overall Market since 1974 using a composite chart of the NYA (NYSE Composite) and the COMPX (NASDAQ Composite). Also, note the Market rise accelerated at the end of 1994 into the July 1998 top. Then after the sharp sell off into Oct 98, that acceleration has dramatically increased, rising above the upper trend line, of the long-term trading channel since 1974. This dramatically increased acceleration “could” be looked at from a long-term perspective as a blow off top. Also note, looking at this composite chart the Market has corrected lower than the previous year's low on more than one occasion. Roebear: I included the TYX and XAU for you to compare. I hope this chart reveals why I have adopted a more cautious approach as of late. To view this chart click on the FEATURED CHART at the MDA web site: homestead.com Good trading all... 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.