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

To: John Post who wrote (22415)	7/18/1999 7:35:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Hi John, Well, to first answer the question about the shakeout. Usually you don't know it is a shakeout until it reverses up and actually breaks the triple top but, you play it on the three box up. In the instance of TMR it has pulled right down to support which is a play in itself. Many times a stock pulls right down tot he BSL and then bounces off. This is usually a good trade play on a big downside move, which in TMR's case being such an iddy biddy, it has done. You are correct to be concern with the RS in O's but as long as you have your stop set and understand it is a trade for a bounce, you should be able to manage it OK. One thing to consider is the bottom of the trading band and the next level of support is at 3. It could fall to that point if it breaks the BRL. My suggestion is if you hold until then (I'm not recommending this just a point I'm making) it may bounce off of that level and not the BSL. The momentum being negative is based on the weekly but the daily and monthly are positive. The weekly won't change until it hits a little over 6 and by that time you have missed the bounce (should it occur). Check the fundamentals of course and see if this sell off was market scare or what. Always take that into consideration. The sector is still positive so the tide is in its favor. Have fun with it and manage it well. Let me know if you do anything and how it works out. Jan I am