[RT] Fw: 1/31 Report

[profitok <profitok@xxxxxxxxxxxxx>]

----- Original Message ----- 
From: <A 
title=mirat@xxxxxxx href="">Mike Burk 
To: Mike Burk 

Sent: Saturday, January 31, 2004 12:37 PM
Subject: 1/31 Report

<A 
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>Technical market report for January 31, 
2004The good news is:
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There have been virtually no new lows on either the NYSE or 
NASDAQ.
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Many of the indicators are about as low as they have been 
at any time since the rally began last March.
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The market remains in a seasonally strong period, at least 
for the first part of next week.
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clear=all>Market tops develop relatively slowly.<SPAN 
>  Part of that development includes a 
build up of new lows.  There has 
been a rule of thumb that says there is little risk until new lows exceed 40 for 
several days.  That rule of thumb 
has held up well since the 60’s in spite of the number of issues more that 
tripling over the same period.  Last 
week the number of new lows on the NYSE peaked Wednesday at 8 while NASDAQ new 
lows peaked Thursday at 10.  <BR 
clear=all>New highs hit their lowest levels in quite a while last Thursday at 
118 on the NYSE and 77 on the NASDAQ.  
Several successful intermediate term timing systems have no sell filters 
based on a 10% trend of new highs.  
When the value of the 10% trend of new highs is above a specified 
setting, no selling is allowed.  
These filters are usually based on NYSE new highs and an aggressive level 
would be around 100 while a conservative level would be around 130, i.e. if the 
value of the 10% trend of new highs is above 100-130 no selling is allowed.<SPAN 
>  The current level of the 10% trend of 
NYSE new highs is 367 and NASDAQ new highs is 240.<SPAN 
>  If there were no new highs it would take 
those indicators several weeks to get down to levels that would permit 
selling.<SPAN 
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>The chart 
below shows momentum of (upside volume / upside volume + downside volume) of the 
component issues of the Russell 2000 (R2K).<SPAN 
>  The indicator is near its lowest level 
since the rally began last March.