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

To: donald sew who wrote (16158)	6/5/1999 10:16:00 PM
From: bobby beara	Respond to of 99985

>>>we really need a higher high and not necessarily a new high<<< Donald, both the dji and the nya broke out of parallel downchannels and made a higher high. If you look at at closing price chart you can now get an ABCDE correction on AOL from the 4/6 top and get a very nice five wave move into the 6/3 low from the 5/11 top. You can also get five waves down to jan support on yahoo. while many on this thread are bearish based of valuations, sentiment etc. the bulls are in command above the 200 dma and when the read is a coin toss the bulls have the edge. The time to make money on the short side was when people were talking about buy net stocks at any price, the time not to be trying to make money on the short side is when you see amazon.bomb cover on Barrons -g- bwdik

To: donald sew who wrote (16158)	6/5/1999 11:49:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 99985

Donald; Sometimes simple TA is less confusing, if people are looking for a bottom the old thing about it happens on Volume still holds. Take any chart of a major stock ( not thinly traded ones) and when if she makes a high on falling volume then she will correct. Once a correction starts the bottom is put in on high volume , the volume will be more than it was just before she started down. As simple as it is the above almost always holds true, of course there are no rules that work "ALL" the time..but betting against this is like asking to get took. No matter what kind of TA they use they should look at the volume for conformation, and I tell you the Dow30 had her last false rally on poor volume, and Friday was poor volume, and there has not been any volume to speak of since her peak to indicate any kind of bottom..she is going to 9900 before she makes any new highs and any one trying to milk this sick cow after reading this needs to donate some money to the sharks anyway. -------------------- Friday after noon was not buyers at all, that was shorts getting took by the sharks, the Specialist ran up the bid/ask just for that purpose..look at IBM too. The market makers are good and short right now having shorted to the suckers who were squeezed they may sell a few stocks at these levels to make it look good, but next week is down again. --------------------- Markets don't just fall kabam at least not often, last year it was a trickle down from April, while the indexes spiked in July , let me tell you that was cause by very few stocks. For the majority April was the high. Indexes often toss a curve and people take them to much for granted in calling the market good or bad. This puppy has been sick since April and the bulls haven't caught on yet..we will put in a bottom when volume spikes and the bulls turn into bears and the VIX hits about 35 or more, its at 23.45 right now and hasn't been this low since the OEX high on April 26th --------------------- CSCO had more shorts on her than buyers most of the day Friday and the Market makers took her right on up and clipped the shorts wings, and left her hanging out on a thin limb. IBM same MSFT same, INTC had good volume of course she is the one I said was the most over sold the other day. Lu & T had decent volume..but for the most part the volume was not there to justify the run up, in fact it was weak. IBM never had any Super buy orders at all, and three super sells which I take were shorts who got it up the arse ..but there were no real buyers ( not many any way ).. --------------------- Some people look at the market overly simple too, always you hear there is a buyer for every seller but , you can't really call someone who is paying back shares a buyer, hell the last thing he wants is the stock he shorted..so when days like Friday come along the Market Makers make the best they can of it, let the shorts run then jack up the bid/ask and short to them as they run for cover. Ghost volume, shorts shorting to shorts covering, no real amount of stock going anywhere..just borrowed shares being swapped from weak hands to strong ones. That was Friday, there were a few exceptions. Jim