Tuesday, June 22, 2004


Hard to believe after hearing and reading every pundit/expert on WS Weeks (2),NBR, CNBC, Barron's expound Bullishly, that we have been in a downtrend since the first full week of 2000.With lower highs and lower lows into the Head and Shoulder Bottom of early '02, the minimum projection of that formation was 1850 points on top of the Neckline of 9050 (weekly charts), or 10,900. We rose 1700 pts.to the Mar.'02 high Resistance level, then resumed an Intermediate downtrend which we are still in until proven otherwise (taking out 10,750). Most Sentiment Indicators are neutral, coming off Bullish (negative for market and rightly so)levels, except for the Investor's Intelligence which shows Bulls at 55% and Bears only 17.5%, an extreme.

With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: brentleonard.com for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Amazon.com: Zero (IN)Tolerance

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