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A contrary view, the Favors Trin5(codi) is near the Sell alert band as the
momentum oscillator and the 5 day RSI, indicate there should be some
pullback in the NDX.
BobR
----- Original Message -----
From: Bill Bancroft <bbancroft@xxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxx>
Sent: Thursday, November 04, 1999 7:25 AM
Subject: Nasdaq ready to MOVE
> I trade using a mechanical model, and that model has me out of the
> market right now due to high interest rates and poor breadth. Having
> said that, I have attached a weekly chart of the Nasdaq that contradicts
> that outlook.
>
> First, the price has broken out of a trading range to new highs.
> Second, momentum has broken out of a triangle and is heading higher
> (assuming the market closes the week where it is at right now--big
> assumption).
> Finally, and perhaps most importantly, the weekly ADX is at a very low
> level reflecting the recent trading range. The ADX indicates the amount
> of trendiness in a market, it does not indicate direction. The low ADX
> is saying that the market is ready to trend. Considering the first two
> points I made, the direction of that trend looks to be UP. If the
> Nasdaq can not stay above the recent trading range, that would be a
> signal that the market may be ready to trend DOWN. Either way, the the
> point is, this market is ready to MOVE.
>
> If one didn't want to try to call the direction of the market, one could
> buy a straddle---a put and call of the same strike price.
>
> Bill Bancroft
>
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