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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (26580)	5/27/1999 11:56:00 AM
From: J.T.	Read Replies (1) \| Respond to of 50167

We have this little interesting divergence between DOW and SOX.... DOW -140 SOX + 12.50. Let us use this as barometer after close of market and see where weight of barometer falls. J.T.

To: J.T. who wrote (26580)	5/28/1999 11:48:00 AM
From: J.T.	Read Replies (1) \| Respond to of 50167

Continuing DOW dissemination of supports and resistance: Notice today DOW has run into resistance at new lower level 10,570 that I have mentioned in two other posts. DOW is going nowhere until this level is taken out on 2 consecutive sessions. And as DOW is lead barometer and proxy for the market right now, these intermittant rallies are to be sold into for those who can not stand heat in kitchen market, imho. If we get rally above this 10570, 10,640 is greater resistance and 10,750 is now huge overhead supply. I will not advise anyone to go long until 10,750 is booked 2 consecutive days. 1/3% and 2/3% retracements from sell-offs is like frog in cool water turning warm thinking he can jump out of pot before he ultimately gets cooked because of complacency and nice warm feeling. So we miss 200+ points, this is small insurance to pay for not getting whipsawed at these mesmerizing levels. Downside risk is still much greater for me than upside potential at 3/1 (21% downside to 7% upside returns). If this is our job to manage risk, than prudence is of order right here. A close below 10,520 today and this rally is nothing more than dead-cat bounce for me. No need to deal with lower levels until markets reverse direction. J.T.