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The chart shows the nasdaq composite index. First we had
the green bar based on an extreme oversold condition in the SP futures.
Sometimes oversold can rapidly become "more oversold", but then the next day
we had the blue bar reversal up off a multi-day low, on a big increase in
volume. After that it spent the next two days pulling back mildly on
contracting volume, another productive sign. Then came a wave of
followthrough buying (purple bar) on the fourth
day after the low, with the major averages up over 1% on an increase in
volume. This confirms the bullish turn. (Notice how the earlier purple bars
didn't work. It was just too soon after such a large sell-off.)
Then yesterday we had the red bar, essentially a reversal off a high on an
increase in volume. But in a rising market (indicated by the earlier
action - the blue bar was key)
many times prices won't really go down after a red bar. Instead things will
just pause for a moment before the uptrend resumes.
The point being that the stock market turns and now look what happens, most
all stocks are going up. At least for the moment. This may be bone-headed
but it's better than that lame daytrade idea i posted... :-)
rgds phil
----- Original Message -----
From: <editorial@xxxxxxxxxxxxx>
To: Phil Lane <patterntrader@xxxxxxxxxx>
Cc: Omega List <omega-list@xxxxxxxxxx>
Sent: Sunday, May 28, 2000 5:50 AM
Subject: Re: You got game?-bonds vs. stocks
>
> Tell me which stocks define "the stock market" and which are the
followers... 80% will follow the Dow? No. 80% will follow the S & P 500?
No.
>
>
> ---- you wrote:
>
> > How about an "intramarket" correlation??? When the stock market turns up
or
> > down about 80% of stocks will follow.
> >
> > best regards,
> > Phil
> >
>
>
>
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