Stock Market Highlight #11
ll-time July, 1998 stock market high projected by "Linear Cycle Indexes", "Inversion Cycle Indexes", and "Astro Points".
(COMMENT #s 478 [# 11], 505, 521, 531, 536)
UPDATED 19980625
COMMENT 1998-478 [# 11]
11. The last few such points have occurred at the following points in the chart; "7" on 980422, "A" on 980512, "F" on 980602, "G" on 980609/980610, and now "L" on 980625.
UPDATED 19980714
COMMENT 1998-505
1. For new "Almanac" purchasers, you might want to visit the "A&P" points in "The 1998 $upertrader's Almanac - 2nd Half Edition".
2. You might then want to review # 11. of COMMENT # 478 on 980625.
3. Although the stock market blew through the first series of these points in early July, the bond made its all-time high (to date) on the "P" point listed in the top of the book.
4. Can you see when the next points are due?
UPDATED 19980714
COMMENT 1998-521
1. Now let's turn to page 295 in "The 1998-99 $upertrader's Book of Linear Time Cycles".
2. If this market peaks this month, that monthly "Linear Cycle Index" (the solid line in the chart at the bottom of the page) is going to look awfully prescient!
3. The projection is even more pronounced in the broader index shown on page 291.
4. Next, note the significance of the "dotted line" in the chart.
5. These lines are the "Inversion Cycle Indexes".
6. Note the dramatic peak on page 299.
7. Now let's go to page 297.
8. The most important factor on this page is the very clear signal provided by the weekly "Inversion Cycle Index".
9. This index is also listed on page 141 - LAST WEEK!
10. Didn't this market make an all-time high last week?
11. Now let's turn to pages 205-209 of "The $upertrader's Reference Manual".
12. Do you see the sell signal this trading technique is suggesting for this market?
13. Now look at the following chart of hourly SPU prices since early June or so.
14. Note that it is POSSIBLE that we have completed an Elliott Wave impulse sequence.
15. This sequence is labeled as waves "I-II-III-IV-V".
16. Now note the three DIVERGENCES shown in the chart (see pages 171-184 of "The $upertrader's Reference Manual").
17. They are labeled "1", "2", and "3".
18. NYSE volume peaked on this rally on 980617, the day after the 980616 low.
19. The rally's been occurring on less and less volume, a bearish sign.
20. Further, the DJIA has not CONFIRMED the new highs in the SP and NQ, again, a bearish sign.
21. Such indexes as the Russell 2000 are well below their spring lows.
22. IBD's mutual fund index has also not made a new high thereby forming an important DIVERGENCE.
23. The market's due to gap up strongly this morning based on overseas strength.
24. Until last week's high is broken, however, we want to be looking for short position entry.
25. This will either work almost immediately or it will be negated.
26. Either way, risk is minuscule.
UPDATED 19980717
COMMENT 1998-531
1. I'd again remind you all that it doesn't hurt to turn to page 398 in "The 1998 $upertrader's Almanac - 2nd Half Edition" once in a while.
UPDATED 19980804
COMMENT 1998-563
1. Am I the only one who has noted the continuous number of "analysts" CNBC
keeps parading on their program who spout the 10,000 paradigm for the stock market (as
measured by the DJIA)?
2. Isn't this a clue of what these guys would LIKE to happen?
3. Doesn't this suggest that they're still LONG STOCKS and HOPING for a rally?
4. In August, 1987, bullish enthusiasm reached 60 percent.
5. At the recent top, it was 54.3 percent.
6. At the previous major high this year, it was 54.6 percent.
7. (Bearish figures are 19, 23.3, and 22.6 percent for the same time frame).
8. Quite telling is the break below the June lows by the Dow Jones Transportation Average,
the Russell 2000, the Value Line, and so on.
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