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

To: StockOperator who wrote (13945)	5/19/1999 10:29:00 AM
From: StockOperator	Read Replies (2) \| Respond to of 99985

The build-up going into this week was much more stressful than the trading itself. I feel like I've been on vacation the past couple of days. Anyway, the markets so far seems to like the action that the Fed has taken. It is hard to believe that many would view a change in posture by the Fed as being positive. Only on Wallstreet, where things are rarely as they appear. Right now prices are holding up pretty well and I don't expect much action this week. However, I would expect prices to stabilize with an upward bias. I think someone was very accurate when they pointed out that we may have to get through option expiration first before the markets decide on a future course. Here on a few observations from the past couple of days. The trannies rallied hard towards the end of the day making up almost all their losses. Many of the airlines actually reversed in price yesterday. The utilities and RUT have been especially strong throughout the past couple of weeks. The RUT appears ready to charge ahead once again. The overall patterns for many stocks are at the final stages of their consolidating patterns. So we should see resolution very soon. One point of concern worth watching is the VIX which is still indicating that it could break out from this level. So I believe the best action right now is to watch how expiration plays out while also keeping an eye on the intermediate term trend. Good trading. SO