Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dana Johnson who wrote (22850)	8/4/1999 11:11:00 AM
From: Ms. X	Read Replies (5) \| Respond to of 34808

When the NYSE BP goes on defense it is very serious. Personally, I wouldn't add positions until the short term indicators reverse back up. No point predicting anything. The NYSE BP has held in there during all of the volatility and its reversal should speak volumes to all. Stocks have dropped, that is for sure but just think the NYSE BP is forward looking meaning things are heading down. Doesn't mean the Dow or Nas won't have up days but the market is heading down. You can follow as many analysts as you like but I'll tell you the NYSE BP has never been wrong. It doesn't equate to Dow numbers but last year it reversed down prior to the Dow decline in Sep/Oct. If you listened, you were out or defensive at that time. Now, if you are long term this is a time to protect your positions. I never suggest calling your broker in a panic to sell but be aware of your positions. If you can look at the charts, make sure they are not breaking down. If the RS holds in X's and still above trend, it may still decline but out perform the market. No need to sell a good stock if you can protect it. If you are trading you must be very aware and scrutinize your stocks. If you find yourself thinking a stock will do something, check yourself. Don't guess what the bottom will be. Now is not the time to try and time the market. If you want to do that wait for the short term indicators. For trading try some shorts not longs. The NYSE BP has no feelings, it really doesn't care what CNBC or anyone else says - it is objective. It's telling you that things are weak, stocks are trying to swim upstream with flippers and 100lb weights tied to their ankles. Ain't good y'all. Think of this. RS in O's means a stock is under performing the market right? Well, if the market is going down that means an RS in O's stock is going down further. It will under perform more than the market will. RS in X's means a stock is out performing the market. Which could mean if the market (remember when I say market I don't mean the Dow) is down 20% the RS in X's stock could be down 10%. That is out performing the market and this is why you need to analyze the chart. You can protect yourself against any downside movement. Of course this doesn't mean that some stocks won't go up and the PnF chart will tell you this as well. I urge everyone not to guess, be a machine. Throw your feelings out the window and keep focused. You control the market, it doesn't control you. Take care, Jan I am