Dorsey Wright & Associates. Point and Figure Message Board

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Non-Tech : Dorsey Wright & Associates. Point and Figure

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To: Ms. X who wrote (648)	10/4/1999 11:31:00 PM
From: Ms. X	Read Replies (6) of 9427

It's time to start putting together some ideas and some stocks for purchase once the indicators reverse up. You may have already seen that some stocks haven't been effected by this recent decline in the market (other than to create a base but no major break downs). JDSU is a good example of this. Also I'd like to address the notion that if the market is down significantly and "most" of the portfolio's are down that it is difficult to make any money. It so happens a good PnF portfolio can break the odds. It is true that this year a greater percentage of stocks were down than up making Mr Jones portfolio look pretty pathetic and Mr Jones really upset when he see's the Dow is up for the year. Remember the relative strength charts. RS in X's means out performing the market. If you keep to RS in X's you are going to do fine. This is why we say to watch those RS in O's. As an example: On October 8th I started buying some stocks into a portfolio. I held those positions through this year come Hell or high water, no selling if the stock broke down, no stops - nuttin'. That portfolio through today is up 81.62%. That is with one stock being a loser throughout the year. The others were winners. I turned 525,821.62 into 955,122.79. I have another portfolio that I bought in June that is up 180+ percent. I'll have to get the particulars later as they aren't right in front of me. How'd I do it? Simple. In the first portfolio I had a list of stocks ready as I waited for the market to be ripe. Last year when all the indicators were negative I watched, when I saw the higher bottom in the NYSE BP and the Dow reverse up, I jumped in. I had sorted Value Line 1 and 2 only stocks and put them into a DWA portfolio. I then processed them through the Piff blender sorting out those that had RS in X's (buy or sell signal), trends positive and breaking good patterns. I had the list and bought some stocks several times as they pulled back etc. I have no idea how the portfolio would have performed if I sold when stocks broke down and followed up with stops. Probably better but just this formula alone created a great return. It has been a public portfolio all year and I did post it when I bought in October. techstocks.com You all can do this now with the DWA search in the individual service. I recommend getting a subscription to Value Line and sorting out the 1 and 2's. Then list them in a DWA portfolio and search from there. Get a list going now. The portfolio I put together in June was of stocks just reversing up in their RS column. Then I looked at the trend chart and picked the best pattern. All where techs stocks that I can remember. My point here is this. The indicators are all in over sold areas. This provides a great opportunity once things reverse. They haven't yet which gives you the time to do your research now. Be ready when the time comes. Great stuff out there. I've found that things can be choppy in this area so keep a strait head and play things without emotion. Some stocks now look like good trade opportunities and have made nice bases. You can grab things on pullbacks. No chasing here of course. Watch for the basing action, I will be. It's like a good mystery novel, look for the clues and try not to arrest the butler and brag to the press before you are sure he done it...

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