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Strategies & Market Trends : Point and Figure Charting

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To: ViperChick Secret Agent 006.9 who wrote (4025)	6/24/1998 5:52:00 AM
From: Bwe	Read Replies (3) of 34805

Lisa, Selling Climaxes (SC) are a subtle sign that people are scooping up beaten down stocks and bringing them off their 52 week lows to at least finish with a gain for the week. SC's indicate a subtle shift to the demand side of things and large numbers of SC's usually occur at market bottoms. The reverse is true of Buying Climaxes (BC). People become overly enthusiastic, bidding stocks up to new 52 week highs on momentum investing and whatever else. All of a sudden, however, supply comes into the stock, and the stock, for whatever reason, finishes the week with a loss. I believe I posted at the end of April that there was a record 208 BC's. Not far from the top. That same week there were only 2 SC's. Extreme numbers of BC's or SC's at any time should raise a caution flag. If a stock you own has a BC, I would closely reexamine everything fundamental and technical about the stock. BC's are one of the building blocks of which tops are made. Conversely, SC's help to form the foundation of a bottom. Great question, Lisa. Hope this helps. Bruce

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