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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Lost1 who wrote (21406)	6/17/1999 8:04:00 PM
From: Dave Shares	Read Replies (1) \| Respond to of 34812

CVS Lost1, I am interested in what Jan has to say, but I did look at these two factors. The sector is in bear correction, but as it is in Xs, and field position is near the middle, I was willing to discount the "bear correction status" RS in Os, I looked at the RS chart, the RS is 4.48, at 4.75 it reverses back to Xs, and given recent strength, that could happen soon. The RS is a buy, and I would obviously not have considered the position otherwise. That was my reasoning, albeit I am a P&F novice. David

To: Lost1 who wrote (21406)	6/17/1999 8:37:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 34812

Evening Lost1...Regarding CVS...Very nice chart with higher bottoms culminating in a quad top break out.... One would notice that higher bottoms with level tops forces the break more often than not...to the up side... Yes the market and the sector control 80% of a stocks move, but there are exceptions....Our indicators are moving slowly south...but certain issues are moving up :-) ps DWA vs sector RS moved into X's in very early June... That was my selection criteria for my picks for the DWA contest...Now in 13th place,,,but tomorrow is a new day, and I would have sold certian positions today in the contest if I could have...Plan and execution!!! Nice move ... Later Preston

To: Lost1 who wrote (21406)	6/17/1999 8:58:00 PM
From: Ms. X	Read Replies (1) \| Respond to 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