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<DIV><FONT color=#000000 size=2>Hi Bob,</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>I've been trading a triangle using trend lines from the
October '98 low through </FONT><FONT size=2>the lows of 8/11 &
9/2.</FONT></DIV>
<DIV><FONT size=2>One line using the tails and one the closing
price.</FONT></DIV>
<DIV><FONT size=2>This would be a symmetrical rather than a decending formation
and as such the pattern would have a likelyhood of being a consolidation in a
continuing upward trend and thus resolve itself in the direction of the
trend.</FONT></DIV>
<DIV><FONT size=2>The sharp break from 1450 on the S & P futures and the
almost equally sharp retracement is a triangle "tell". A bitch to
trade.</FONT></DIV>
<DIV><FONT size=2>As a decending triangle the pattern could run a few days
longer. Such a time extension would question the symmetrical theory and put in
place downward bias. A decending triangle being bearish.</FONT></DIV>
<DIV><FONT size=2>As of Friday's close with a return into the trangle from a
break of the lowest symmetrical trend line I'm looking for a upward thrust to
1367. </FONT></DIV>
<DIV><FONT size=2>Please don't misunderstand me. I'm not bullish or bearish just
trying to trade what I see.</FONT></DIV>
<DIV><FONT size=2>So, being a triangle some probilities are high.</FONT></DIV>
<DIV><FONT size=2>1. A breakout is going to happen and a trend will
develop.</FONT></DIV>
<DIV><FONT size=2>- How do you position yourself?</FONT></DIV>
<DIV><FONT size=2>- What are the projections for such a move?</FONT></DIV>
<DIV><FONT size=2>- Where are the S/R levels? And which may offer a tradeable
counter move?</FONT></DIV>
<DIV><FONT size=2>2. How to trade the triangle or break out.</FONT></DIV>
<DIV><FONT size=2>- Trade the pullback in the direction of the breakout on a
test of the trendline?</FONT></DIV>
<DIV><FONT size=2>- Buy/sell the breakout and set a stop and reverse or just a
stop somewhere back in the trangle?</FONT></DIV>
<DIV><FONT size=2>- Look to counter trend trade S/R levels and Buy/Sell Fib
retracements within the trend move itself?</FONT></DIV>
<DIV><FONT size=2>- Range trade until a directional breakout is confirmed by a
close above the breakout high?</FONT></DIV>
<DIV><FONT size=2>3. Warren Goldstein <FONT color=#000000>in his post of
8</FONT>/27 suggested an ABCD move with a low of 1129.8 which lines up somewhat
with a Head & Shoulders pattern math move from a break of 1300.
</FONT></DIV>
<DIV><FONT size=2></FONT><FONT size=2>In any event, price will resolve its self
soon regardless of what conclusions one may glean from underlying
indicators.</FONT></DIV>
<DIV><FONT size=2>As I believe this to be a significant juncture I have taken
the liberty of cc to the list and to individuals who have opinions I respect.
Please excuse me if that is unsatisfactory and feel free to blow off any reply
if you so choose.</FONT></DIV>
<DIV><FONT size=2>Best regards,</FONT></DIV>
<DIV><FONT size=2>George Tate</FONT></DIV></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 solid 2px; MARGIN-LEFT: 5px; PADDING-LEFT: 5px">
<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>ROBERT ROESKE <<A
href="mailto:bobrabcd@xxxxxxxxxxxxx";>bobrabcd@xxxxxxxxxxxxx</A>><BR><B>To:
</B>Realtraders <<A
href="mailto:realtraders@xxxxxxxxxxxx";>realtraders@xxxxxxxxxxxx</A>><BR><B>Date:
</B>Saturday, September 18, 1999 5:57 AM<BR><B>Subject: </B>MKT -
NYA<BR><BR></DIV></FONT>
<DIV><FONT size=2>Just wondering how others are interpreting the current NYA
pattern and McClellan Oscillator configuration. It looks to me like
there is a bearish triangle with a decending top and essentially flat
bottom. As the vertex of the price triangle is approached the
McClellan Oscillator is showing extreme weakness in a down channel.
Some may be misinterpreting the oscillator at this time as saying it is
oversold when in fact it can become twice as oversold if the NYA drops
through support in the closing weeks of the quarter. It also seems
like there should be massive tax loss selling this year since the advance
decline line has been dropping for a significantly long time.
</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Bob Roeske</FONT></DIV></BLOCKQUOTE></BODY></HTML>
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