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

To: Jorj X Mckie who wrote (225)	1/31/1998 11:10:00 AM
From: Ms. X	Read Replies (1) \| Respond to of 34811

ANAD, profile of a stock that fooled the P&F chart - well kinda... What I love most about P&F is the clear signals given as to the direction of the stock. I bring ANAD up because on the first peek it was starting to look pretty good. It had recently broken through a double top and had broken its bearish resistance line. This is usually a bullish sign for a stock. But then, what happened? Bad earnings and BAM! Down that baby went. Falling from 35 to 13.5. Ouch! So, was there anything on the P&F chart that could have told us the stock was vulnerable. Well, yeah we weren't completely fooled. Here it is: For those who have followed this thread you have heard Tom Dorsey, Tom Dietz and I constantly talking about relative strength. How a stock performs compared to the rest of the market. We are always very cautious when a stock is weak in this area and for good reason. ANAD's RS was in a column of O's and the last signal was a sell signal. Even thought it broke its bearish resistance line it was still a weak stock. I have tried to stress that everyone take a look at the big picture. If you are looking at P&F charts take advantage of the bullish percents, sector risks, relative strengths and market risk. Everything works together. Not a single stock out there is immune to what is going on around it. And as always, look at the fundamentals! P&F and fundamentals go together to form a sound investment strategy. (I have no idea what the FA on ANAD was, if anyone does I would be curious to know.) Happy investing, Jan