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Besides,
QQQ on 60 min chart is wedging up .... Usually a short term place of
stalling.
Don
ROBERT ROESKE wrote:
>
> 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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