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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Esteban who wrote (9855)	12/31/1997 11:21:00 AM
From: ivan solotaroff	Read Replies (2) \| Respond to of 79207

Esteban: As they say, Don't get mad, get even. I'm spending the morning studying the SGI and OXHP charts, trying to figure out (retroactively, unfortunately) why one popped and my guy didn't. If you draw a trendline from the top of OXHP's gap-down day (10/24) across the top of its intra-plunge high of 12/1 (after which is starts another steep decline, leading, four days later, to the second gap), you'll see that it sets up resistance right in the middle of the signal day. After THAT was overcome, we had the magnificent (from a cat's-eye POV, at least) run-up of yesterday and today. Also, the volume showed the classic shape of exhaustion/recovery in the four days prior: high, less high, low, high, and on the signal day, even higher than the first day starting the five-day sequence. SGI has nothing of the kind to recommend it, though the chart does show exactly where one should have gotten in and out in mid- and late- November: If you draw a trendline from the top of its gap day across the top of its first real peak following the gap (last week of October) you'll see that it forms a point of stiff resistance on the second day after the first bottom in the second week of Nov.: not a signal day, but it saw a one-point single-day rise that the trendline very effectively stopped in its tracks. Follow that trendline down, and, though not precisely, it takes you very close to the signal day that you played. As I say, it's not precise, but there was a visual clue in that broken trendline that the cat was indeed out of the bag. The run-up then had horizontal resistance from the previous non-signal day one-point run-up; but like most horizontal lines, it was of only temporary significance, and actually added a little propulsion (in its being violated) that took you up to 15. Once there, however, that line's failure to support does seem (at least retrospectively speaking) to have been a sell signal; once violated, it led to the small gap-down day, on the seventh trading day of Dec. Blah, blah. Whassup with QUAL? Did you play it? Ivan