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

To: Bull4Now who wrote (1512)	3/6/1998 9:34:00 PM
From: Ms. X	Respond to of 34811

Actually, we had just discussed a similar situation with CA and CSC. CSC rose on expectations of the takeover from CA and CA went down. We picked up on the idea of buying calls on CA when the news was released that the hostile takeover would not happen but, we failed to see that CSC would collapse and therefore we should be buying puts too. So, we aren't perfect. That was Options Jerry an I who were kicking ourselves for that mistake. The same could apply to SIII. It is a guess of a play. On a P&F basis, SIII looked pretty bad anyway. They are way below their bearish resistance line and their RS is very weak. I don't have today's numbers but it would take a move to 15 to break the bearish resistance line. If it moved to 15 not only would it break the brl but it also would break two double tops. It did just break a double top at 6.5 after finding support at 4.75. Prior to that signal it had given three consecutive and very painful sell signals. Interest should be for aggressive traders only. Positions to buy should only be on a pullback to the 5.5 area with a stop of 4.5. For a short it is hard to set a stop point since the next resistance is up at 13. You would have to calculate the percentage loss you are willing to take. If any positive movement is on speculation we can make an argument for the stock to go down on any disappointment. Obviously, if the stock looked bad before Intel and something happens to that deal, the stock would return to it's original weak condition (not that it is looking strong now). IMO as they say. Hope this helps. Take care, Jan