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

To: Allan Harris who wrote (89)	1/25/1998 5:21:00 PM
From: Ms. X	Respond to of 34808

Allan, regarding Intel. I happend to be talking to Tom Dorsey and passed him your question. He offered a response... Remember this is an art not a science. In my book I mention that changes in columns is more important than the signals themselves. Reason for this is: in many cases a strong stock has a long rise in X's on the RS chart. When it changes trend, the reversal happens first into a column of O's then it declines. If the X column is long, then it takes a major decline in the stock to reach the point where the column of O's exceeds a previous column of O's. By that time, the move is over. INTC changed columns in August before the sector reversed, right on the money. This change is not one of those long column of X's I just talked about but the decline in O's is long enough to suggest a reversal of sorts. The reversal might be of the few months duration. INTC would then be a trading stock followed up with stops and if it turned into a long term play then great. The RS chart in Semiconductors SOX verses the SPX is very negative and another reason for caution. Buy INTC on pullbacks with stops on new bottoms. If playing calls, buy in the money and only as many as you would otherwise have an appetite for round lots. Take one of two approaches. Consider the option price your stop. This allows you to stay for the whole ride to expiration. If you take this approach do not consider even looking at the option until the third friday of the expiration month. Next you could take the stock substitute approach and stop the option where you would stop the stock. T