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To: donald sew who wrote (34039)	1/25/1998 10:40:00 AM
From: MonsieurGonzo	Respond to of 58727

Donald; RE:" BKX.X and rate-sensitive sectors " I agree with your analysis. Perhaps we can anticipate that all the rate sensitive stocks, such as certain utilities, will follow that pattern, Donald. >When the DOW turns up the OSX will also... I (slightly) disagree with you on that one, Donald; the OSX.X has its own rhythm, which is slightly out-of-sync with the DJIA-30. If the index does find support at ~89, it would indicate some kind of base - and, like you - I would expect a horizontal trading range to ensue. For our purposes, all we need is a channel with waves inside of it. OSX.X has been on railroad tracks with big, beautiful waves inside it - and I have made 3 very profitable trades on it: 2 long and 1 short - since November. CSCO is very interesting in this regard. Were I to apply your guitar to an equity, it would be this stock. CSCO has a very clear channel since MAY-97, and you can see how Judy has been "hitting it with a hammer from above" (^_^) as she so colourfully puts it - over and over again at the top of her trading range. I urge you to consider running your guitar on CSCO. Your guitar waves are fascinating and, good indicators Donald. In general, I find you to be 1 and sometimes 2 days ahead (of reversals). When there are obvious candlestick indications, such as the reverse hammer on the OSX.X at ~89, or the Doji on XAL.X at ~700, we are completely in sync. Where I have the most difficulty is when there is no Doji or other star at the top or bottom of a wave. For example, the Tweezers Top and bearish piercing-engulfing (on INDU) on JAN 20-21 was too quick for me; though your guitar could see this happening. I'm using linear channels and (horizontal) fibonacci retracements (as you know), which - for the most part - concur with your guitar. When we hit the bottom or top of a channel; that also corresponds to a fibonacci or major horizontal support/resistance; that also has a Doji or other candlestick indicator; and you are posting that the guitar is reaching an up or down limit: I buy 40 contracts, and expect to close profitably in 2-3 days, max. I think it's great that our two, different techniques are often indicating the same reversals - though I tend to rely more on the candlesticks for 1-2 day timing of entry points, rather than the guitar or, even my own channels. Happy Trading and, good luck with Denver, Donald. -Steve