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Remember, the ADX does not indicate which direction the move will be. The move
could be down--the first sign of that would be a move back into the trading
range. On a weekly scale, the ADX is saying--whichever direction the move is,
there is pent-up energy to carry it a long way. This lack of objectivity is why
I trade with mechanical models.
ROBERT ROESKE wrote:
> Yes, I believe it could drop back to 2000 from 3000. These type stocks
> typically have 50% moves, if not now, then next spring and that would only
> be a 33% correction.
>
> BobRoeske
>
> ----- Original Message -----
> From: Alexander Levitin <alevitin@xxxxxxxx>
> To: Donald E. Thompson <detomps@xxxxxxxxxxxxx>
> Cc: RealTraders Discussion Group <realtraders@xxxxxxxxxxxx>
> Sent: Thursday, November 04, 1999 8:07 AM
> Subject: Re: Nasdaq ready to MOVE
>
> > I do not know how to make the chart go to the e-mail, but if you look what
> > happened to the Nasdaq (let say, Composed) when it move thought 2000 for
> > the first time, that what I expect it to do now.
> >
> > Uneducated Alex.
> >
> > At 10:47 AM 11/4/99 -0600, Donald E. Thompson wrote:
> > >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
> > >> >
> > >>
> >
> >> -------------------------------------------------------------------------
> ---
> > >> ----
> > >>
> >
> ------------------------------------------------------------------------
> > >> Name: CODIndx.gif
> > >> CODIndx.gif Type: GIF Image (image/gif)
> > >> Encoding: base64
> >
> >
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