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

To: James Strauss who wrote (16211)	6/6/1999 8:00:00 PM
From: StockOperator	Read Replies (4) \| Respond to of 99985

Jim, "a rally within a correction" I believe this is a pretty good way of describing what is going on. When I look at stocks in general I am seeing many stocks moving at different stages of the game. While it is common knowledge that the nutz have taken the brunt of the damage stocks like CSCO, many of the bandwidth issues and generals like IBM have actually held up pretty well. As a matter of fact if you closely examine the charts for a wide variety of stocks to include the airlines their recent retreats have closed many of the price gaps left unfilled during their recent price appreciation. So is this recent bullish price action something to be taken seriously? I believe it is, simply because it is happening at such a critical place on the charts. The fact that the DOW is turning up after testing a long term trend line established from it's October bottom tells me that the market is responding bullishly to what is probably the single most important trend(line) that's been driving this index. That coupled with the VIX, the recent push on the RUT, possibly through this rising wedge and I think we are at the beginning stages of a possible turn around. Of course if this is correct it should become more apparent as this trading week unfolds. As I said before the push in the NAZ is not even apparent yet on the charts. And as I said in my previous post I see plenty of resistance along the way if prices start rising here. That is why I believe the markets will start to rise attacking these resistance levels and position themselves for a breakdown or breakout once the direction of interest rates is decided by the FED. OFF TOPIC Jim, I am a big fan of your thread. I have found plenty of action from your New 13's list. I was wondering if CMPD has popped up on your screen yet. Back in January on this thread I posted a list of stocks that I thought would double in January 99. Back then CMPD was about $.60. I thought that CMPD based off it's long term chart was going to make an explosive move up. I must admit my call was five months premature. Very easy to do when you have 10 yrs worth of price data to work with. Anyway, that move up has started in May and has really accelerated the last two weeks with the company receiving FDA approval for a product they've been working on. That week the stock went from .65 to 4.03. The last week has seen prices retrace back to 1.31 and once again begin to head higher (gap filled). Currently the price is 2.21. If you get a chance check out the long term chart for this company. It has a history of making very quick explosive gains. Personally, I have unloaded my bag of tricks when analyzing this stock and I honestly believe we're about to see a repeat of those historical gains. Regards, SO