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

To: bobster who wrote (1100)	2/25/1998 10:37:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Bob baby, I will attack your most excellent question in the morning when I have had a good nights sleep. This is a great question for the next Q&A with Tom but I won't make you wait. Until tomorrow, Jan I am

To: bobster who wrote (1100)	2/25/1998 11:19:00 PM
From: Gottfried	Read Replies (1) \| Respond to of 34811

bobster, I started a trial of Scobey's PnF site. He just added 200 industry groups this week. I asked where he gets the group information and here's his reply... >> Our industry group source is from Henry Ford who carries the site pitbull.com. IBD groups are copyrighted and they would not grant us permission to use them. (Their Loss). Henry's groups run very close to those of Chartcraft that gets theirs from IBD. Also our charts are updated daily not every other week like chartcraft.<< So it seems everybody has different groups. I would like it best if all services used IBD groups, but IBD seems to feel quite proprietary about that. I intend to use my full 2-week trial before subscribing to anything. The monthly fee at Scobey's is the same as DWA. scobey-point-figure.com Gottfried

To: bobster who wrote (1100)	2/26/1998 6:06:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Hi Bobster, I posted a response from Dorsey today that addressed this very issue <Are the sector ratings not to be taken too seriously?? > Yes, sector rating are to be taken seriously, very seriously, but you also look at them in context. I mentioned last night that Oil service had reversed down and someone asked this morning what that meant. Here was Dorsey's response: "You trade on the relative position of the Sector. The bullish percent is designed to show risk. A low bullish percent (34%), as in Oil service, suggests low risk. That is how you evaluate it. Then look at HAL and you see the stock has pulled right back to support. The long term trend is up so, low risk, chart at support, fundamentals intact = buy the damn thing and then manage the trade. T" If a sector reverses down from above the 60% level you have much more risk in that sector than one that reverses down at 40%. Relative strength measures how the stock compares to the NYSE. How it performs compared to other stocks. If the RS is in X's it is outperforming and the outlook is good. If in O's it is under-performing and the outlook is risky. RS is measured continually. If the RS flips positive or negative you will see it immediately in the portfolio section. When an RS flips positive (like Dell, INTC and CPQ did a month ago) we assume the stock at least short term, will outperform the market. When it flips to O's we assume the opposite. If you wanted to do a put, you would look for a stock with a weak RS. You have the pertinent information there. What you are missing is the signal, sell or buy at the individual site. If the RS is on a buy and in X's it is stronger than one that is on a sell signal and in X's. This may be piecemeal however. X's are X's but I can confirm that. I use RS all the time. Whenever I do an analysis you will see I mention the RS. Can't tell you how many stocks with RS's in O's fall and crumble. Especially if they are below the bearish resistance line. QCOM is an example. RS -, below bearish and it crashed. I make sure on these stocks that stops are firmly in place. If a stock has a great RS I might give it some more room, not as tight of a stop etc. I buy stocks with strong RS not negative RS. I may trade negative RS but I won't buy for long term. I hope this answers your questions, Take care, Jan I am