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<DIV><FONT face=Arial size=2>For those whose learning curve has some way to go,
here are two examples of flags which often point the way. The Bull
Flag with its down angle and the market breaking to the north, and the Bear
Flag, with the opposite directional indication.</FONT></DIV>
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<DIV><FONT face=Arial size=2>As patterns go, they are both quite good, but the
big but is that you do not know how long the flag is going to be. Since
both are periods of congestion, the breakout could, technically, be either
side of the trendlines. Whichever way, the interesting point is when
the market is approaching the extremities and watching and trading what you see
and not what you think you ought to be seeing...</FONT></DIV>
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<DIV><FONT face=Arial size=2>In my book, they are nowhere near as strong as
wedges, which even with the ones that break the 'wrong' way still break and
give you the trade. So far as the way the current Bear Flag is shaping up,
it is reinforcing other bear perceptions, which should in theory be good news
for the stock market. Anyway, some food for thought following the lack
lustre day after the rate hike (which had so obviously been factored into the
market beforehand - as all the gurus are saying, now!)</FONT></DIV>
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<DIV><FONT face=Arial size=2>Take care...</FONT></DIV>
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<DIV><FONT face=Arial size=2>Bill Eykyn<BR><A
href="http://www.t-bondtrader.com";>www.t-bondtrader.com</A><BR>"Learn to read
the tape"</FONT></DIV>
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