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Realtraders,
On 8/6/97 Bob wrote: So far so good on the VIX front. The numbers continue to play out as expected. The VIX and its derivative the VIX Zone score continue to drop and the five day AMOS timing component broke out of its triangle to the upside. Now if technical history repeats, the market is on the verge of generating a sell signal.
Observation: As many of you probably know, the recent rally in the market has been lead by many of the large cap Tech stocks on both the NYSE and NASDAQ. Fortunately, I own a few of them. (dell, intc, msft, mu, atml, asnd, nscp, mot and a bunch of non-tech stocks). Anyhow, as you saw, the Dow rallied +70 points for the day and closed near it high. However, many of the stocks that I own and follow, DID NOT close near their highs, and some were several points off their high. Usually, this type of occurrence often indicates that the buyers are fading.
Here are some examples: (layout will be; SYMBOL, High and then the Close)
Dell 84.625, 82.75 Intc 102, 101.125 Msft 144.625, 143.50 Mu 59.25, 57.375 Nscp 41.125, 39.875
You will see in the examples above that most of these 'leading' stocks gave back most of their gain for the day. In lieu of some of the other messages sent to this forum tonight suggesting possible exhaustion, I thought I would include my two cents. If I am correct, I will be moving my trailing stops closer in order to lock in profits.
Sincerely, John Boggio
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