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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: Tommy Dorsey who wrote (3342)	12/17/1999 1:27:00 PM
From: Ms. X	Respond to of 9427

Continuing with charts on DWA... The buttons down the left hand side. Still using the CSCO chart. RS vs Dow: Click in here and you will see a chart of Cisco's RS. At the top is the following... Cisco Systems Inc Relative Strength - CSCO using DOW (12/14/1999) 8.77 - History Sector: Computers (Risk: Bull Confirmed 62+) Stock Mom: Pos This gives you the RS info at a glance. The blue link "Relataive Strength" is linked to a daily calculation of the RS. The chart is updated weekly and if you are following a stock that is close to reversing its RS one way or the other this is where you look. As an example: Let's say the RS is in X's at 7.5 and will reverse down at 6. You look at the "relative strength" link to see where it is currently. If at 6.25 you know it is getting close to reversing down. The date is the last time the RS chart was updated and the reading at that time (in this case 8.77). The "History" blue link gives you the history of reversals, buy or sell signals. Here is the RS chart. Relative strength to the Dow charts show how the stock is doing compared to the Dow. RS's that are on buy signals have been exceeding the market consistently and with strength. You will see here with CSCO that the one pullback was brief and set the chart up for a buy signal. 9.5 9.0 --------X 8.5 C <--December of this year. CSCO is still going strong. 8.0 ----+---X 7.5 \| X 7.0 ----+---B 6.5 \| 9 6.0 ----+---X 5.5 \| 2 5.0 ----+---X 4.75 \| X 4.50 ----+---X 4.25 \| C <--Buy signal in December.'98 4.00 ----X --X 3.75 X O B 3.50 ----8 O X 3.25 X A X 3.00 ----X O <--Brief pullback in October. CSCO was not performing 2.75 X as well as the Dow at that time. I believe this was 2.50 ----X --during the time that the techs were getting hit hard, 2.25 X harder than the Dow at that time. (1998) 2.00 ----X -- 1.75 X 1.50 ----X -- 1.25 6 1.00 ----X -- 0.75 X Continued in next post.