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

To: Sam Quentin who wrote (1964)	3/25/1998 10:00:00 AM
From: Ms. X	Read Replies (2) \| Respond to of 34811

Everyone should read: Question to Tom: "I have a question that has been bothering me about PNF. With last Friday's issue, Michael Burke was saying essentially to stay away from oil/drillers by looking at a few specific charts and the X's and O's. Yesterday, John Bollinger said that oils/drillers where not a good sector and to stay away from them or sell into strength. He saw a bear trap on Monday. Tom Dorsey likes oils/drillers. Now they all essentially look at the same chart. How can they be so different?" Toms Answer: "That is why this is an art not a science. If we all saw exactly the same thing one could simply plug in and put it in Cruise Control. The price of Oil had come down significantly. The sectors were two of the lowest in the distribution. Through good research and with the right services, I knew that the Saudi's had brought Venezuela and Mexico to their knees. They were at that time pumping oil at a loss. Saudi Arabia is a $1 producer while Venezuela is somewhere near $10. Once Venezuela was brought to their knees we knew, through our research, that they would turn off the spigot. The irrefutable law of supply and demand would kick in without a doubt. Chevron chart was in a strong uptrend and had not given up at all in the face of $12 oil. Texaco had an exemplary chart. Many of the oil service companies charts looked very good. Add that to the fundamental data we had and you have a high probability of success. We were simply lucky they popped the day I was on CNBC. We are thinking much more long term. If the Saudi's are successful in roping in the cartel, then you will see Greenspan raise the discount rate to 5.75%. No one will believe us when we suggest this in the near future, however." Tom.