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

To: HairBall who wrote (14687)	5/23/1999 12:37:00 PM
From: stockycd	Read Replies (1) \| Respond to of 99985

LG and all, It will be interesting what tone the discussion takes on tonight. There are 2 or 3 things in particular that stick out this weekend that I would like to bring attention to and hopefully discuss tonight. The Transports--HELLO!!! The transports have just put in about a 6.5% drop straight down and no one seems to have noticed (media, commentary, ect). And it shows no signs of slowing. The S&P and the DOW look to be in the "stairstep" pattern that Don uses now and then. Starting at about May 13-14, we dropped and have been essentially sideways for a week or so. The NASDAQ is in a beautiful symmetrical triangle. Any more downside and it will be bye-bye internets and techs! The VIX seemed to have been held down last week due to expiration. The markets were uncharacteristically flat. I don't like it. Expiration week should be all over the place. I'm looking for a big bounce in the VIX next week and the market should respond accordingly. The semi-equips sold off Thursday and Friday even in the face of rising orders (from the BTB). I track those stocks very closely because I think alot of smart money moves in and out of issues such as AMAT, KLAC, TER and others. When we are in the midst of an impending selloff, they will usually tank a few days early. I'm not shouting correction, but more and more caution is needed in playing this market. Chris