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Strategies & Market Trends : Point and Figure Charting

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To: Judy who wrote (6811)	9/5/1998 12:18:00 PM
From: Bwe	Read Replies (3) of 34808

Schlumberger just gave a buy signal on it's p&f chart at $49 and has an upside po of $56. The reliability of buy signals and price objectives in a bear market is very questionable so it must be taken with a grain of salt. A stop would be placed at $44. Should the stock make it up another box to $51, then a reversal into a column of O's would put me on alert to watch for a HPT. Hypothetically, if the stock were to move to $52 and then reverse down, I would put a stop at $49. A HPT in this market would take SLB down to the low $40's and surely give a sell signal at $44. Lots of what ifs in this post but suffice it to say that SLB and some other stocks in the oil service group are in trading patterns. Another stock that looks tradable is FGII which is currently in a long tail down pattern that has already reversed up and is at $14 1/2. FGII hit a low of $10 1/2 and had a run of 20 straight boxes down and the first reversal up is a trading buy. Noble Drilling (NE) just gave a "low pole" buy on friday at $14. This suggest a move above a previous top which would be a move to $18 1/2. It can't be stressed strongly enough that the bear market, the bearish RS of almost all of these stocks, and the fact that they are trading below their Bearish Resistance Line calls into question any bullish pattern that emerges on their charts. Transocean Offshore (RIG) also moved into a low pole buy spot at $28 on Friday. The next double top buy is at $33. Santa Fe International (SDC) is in a long tail down pattern and in his book, Tom suggests that this pattern is more effective if the run of O's is played out over a shorter time frame. SDC has a run of 35 straight boxes down since May and reversed up at $14 1/2 for the buy signal. Global Marine (GLM) is in a low pole buy at $11 1/2. The next double top buy is at $14 and a move to $15 would clear another top at $14 1/2. The Bearish Resistance Line is at $17. Should the price of oil continue up here, these stocks could provide a trading opportunity with great potential for profits in this bear market. All IMHO. Best to all, Bruce

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