Sv: [RT] Diamonds Were Forever

["Stig O" <olausson@xxxxxxxxxx>]

I'm no 
expert but it looks to me if you only look at this chart with no other knowledge 
that the move could be over here or anywhere down to just below the old 
lows.
<FONT color=#0000ff face=Arial 
size=2> 
<FONT color=#0000ff face=Arial 
size=2>Jimmy
 
That's one way of looking at it. Just looking at 
the chart.
Another way is to look at 
the pattern the lines form. In this case they are forming what some people see 
as a Diamond.
 
In John Murphy's book, "Technical analysis of futures 
markets" we can read on  p153: The diamond formation is another 
relativly rare pattern thast usually shows up at market tops"
 
further down on the page he repets and emphasises "..IS 
MOST OFTEN SEEN AT MARKET TOPS"
And further down "Normally the breakdown will see an 
increase in trading activity"
 
Now, with the decisive break we saw this week, there is no 
doubt in my mind that we have seen the top in the Dow.
 
And remember, a break is often followed by a test of the 
broken trend line, in this case back UP to the line and then the main direction 
should be down.
So this should be a good selling oportunity for those caught 
on the wrong side.
Stig
 
stig

    <FONT face=Tahoma 
    size=2>-----Original Message-----From: Stig O 
    [mailto:olausson@xxxxxxxxxx]Sent: Saturday, October 14, 2000 2:51 
    PMTo: realtraders@xxxxxxxxxxxSubject: [RT] Diamonds 
    Were ForeverIsn't this a beautiful diamond? 
    A weekly chart of the Dow.Please note the parallell lines.This 
    is what I call a Break Out!Or "Down" if you like...... A 
    retracement rally (steep and scary) and down we go!Or?Other 
    suggestions?stigTo unsubscribe from this 
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