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

To: Russ 5150 who wrote (586)	2/11/1998 8:11:00 AM
From: lobster	Respond to of 34811

Russ, In looking at the chart, you made a good move by snagging SOTR at 55, the RS is on a buy signal as well as the stock. The only negative on the stock is that the sector is bear confirmed at 72. Last night on the chat, Jay, an analyst at Dorsey Wright, said that the sector momentum seemed to be turning positive again. If the sector reverses to any bull status, you still need to be careful as the sector is overbought. I would use 53 as my stop loss because we are way above the trend line and it is a long fall down or I would use a sell signal of SOTR's RS whichever happens first. As far as fundamentals go, SOTR should keep on performing nicely. I believe they are Alabama's largest bank. Personally, I would avoid the banking sector and focus on some of the other sectors such as the oil/oil service. They have better field position. Also, if you have not read Tom Dorsey's book on Point and Figure, you need to. It is a good learning tool. Visit his web site to find the book. The address is www.dorseywright.com After you have started the book, take a trial subscription to his website. PnF will start making more sense. Later, Lobster