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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (3849)	7/30/2000 9:18:18 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 30051

Misheldo, JXM and Tim are our experts in the art of reading PnF. Frankly, you got to be careful not to use just one technical tool. You want to have a lot of "turnips" and try and see convergence of parameters to indicate a trend continuation (the trend is you friend) and divergence between various parameter to indicate a reversal. Right now all the turnips are "negative" on RMBS, one of the oscilators has a short term blip up, but the OBV is still trending down, depsite the spirited rally Friday. The fact that we actually painted a doji indicates some indecision, but in view of the fact that the rally was instigated by a license announcement, I would say the stock goes under $65 rapidly before it finds a bottom. Others observers could say, "in view of the market general condition, RMBS behaved greatly" (not I). Zeev Zeev

To: mishedlo who wrote (3849)	7/30/2000 11:31:14 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 30051

mishedlo, It doesn't necessarily indicate a reversal in RMBS yet. Just the potential. We would need more Xs in the current column. The rising column of "*" is what is called the "Bullish Support Line" or BSL. Often it will correspond to the 200 dma, but does not necessarily have to. It is basically the long term bullish trend line. If the line is violated that is considered a bearish indication. I would not buy RMBS based on the P&F chart. Some others might. I agree with Zeev though that one should not rely on one charting or TA technique. Based on the chart, I would be looking to enter RMBS at $55. This assumes that the market continues to break down as it has been. JXM