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Strategies & Market Trends : Point and Figure Charting
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To: Lost1 who wrote (21406)6/17/1999 8:58:00 PM
From: Ms. X  Read Replies (1) of 34812
 
One always takes into consideration the sector and the RS.

The sector while in Bear Correction, is in a column of X's. Waiting for the sector to generate a buy signal will probably be well past most of the stocks in that sector rallying. The RS does make this a trade play and one that you would want a stop set.

You aren't incorrect by not entering if it doesn't meet your criteria for a safe trade or investment to enter. But, with the quad top break and proper management, it can perhaps be a very nice trade for someone who is willing to manage it.

There is never an absolute. As it has been stated many times this is an art not a science. You have to take a look at the whole picture. I think you were mostly concerned with the sector chart being on a sell signal. That isn't as dangerous as a trend chart on a sell signal. For instance, Bull Alert, the best position for a sector chart to be in by design has to be on a sell signal. We would not wait for a buy signal once a chart has become Bull Alert. We jump on the first reversal up. Sector in X's is what is important. RS in X's is important. On a sell is less strong than on a buy signal, but the X's are what counts.

Hope that makes sense...

Oh, looks like CVS will flip RS positive soon.

Jan I am
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