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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (21033)	5/10/1999 1:42:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 42787

Bad time to be shorting MER. It has already pulled back during the first hour of trading and has demonstrated some strength on the upside since. When the financials provide a market "tell" in relationship to another event like the bonds, as they did on Friday, it is not a good idea to short that group. You may have your opportunity coming up soon, but I do not think this is a good time. You also have the rising DJIA to contend with. I also would look for setups that would place the odds on my side for a quick and timely trade. I do not see anything very apparent with MER. It does look like you are going by the daily chart where I see some evidence for a continuation to its previous sell off. Here I think 77 3/4 could be a good entry price. I would wait for the intraday and daily charts to dovetail before selecting this as a short. Still, technically speaking, there must be better short candidates out there. Are you placing much of the decision to short one of the financials on the increasing interest rates? Market Update 1:30 PM has gone by without even a burp from the market. This includes both the DJIA and NASDAQ indices. Some of the bellweathers are being bottom fished. Not my idea of a healthy market ready to blast off to new highs, at least on the NASDAQ side of the market. Bob Graham