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

To: wizzards wine who wrote (2316)	4/10/1998 4:20:00 PM
From: Al Serrao	Read Replies (1) \| Respond to of 34811

Preston, thanks for taking a look. I agree the market is high and we sure are due for some kind of pull back. Hope you and your family are having a great holiday.

To: wizzards wine who wrote (2316)	4/11/1998 2:41:00 PM
From: Dennis J.	Read Replies (1) \| Respond to of 34811

To WW: Thanks for your comments. Perhaps we can visit at the SF seminar. To Al Serrao re HON: WW has some great advice, and we are nearing a market correction, and then perhaps, a flat trading range for a while (see msgs 2289 and 2290). Yes, it is extended from the breakout of the quad-top at 71, but it gave a new double-top buy at 85. HON began a long downtrending channel last July, and only broke out of it in early Feb. It has an excellent pattern of new-highs, short-consolidation, more new highs. Looks like a stock that wants to go even higher. Compare to Lucent (LU), which has been extended for a very long time. Broke out about 43, ran to 55, paused briefly, came out of a DT and ran to 73. At times like these, P&F isn't at its maximum usefulness. Time to check other technicals, like stochastics (ST), on-balance-volume (OBV), money flow (MF), phase (PH), directional move (DM). I see all of these in AIQ's Trading Expert, plus AIQ Bands (something like Bollinger Bands). Stocks that ride up the upper band, and stay above all the MA's are the momemtum stocks. HON may be just getting started. Also time to do some reading about HON (SI thread?), Zack's, HON web site, IBD, Equity Trader (www.equitytrader.com). I note HON is not well correleated with any group, so looking at group strength may help only a little. Finally, what to do. Waiting for a pullback could be very painful (but there are other stocks). I might buy a little, hoping for a correction, and expecting one to hold at 81, buying at 81-82. Then, if all goes well, you might even like to average up as it goes thru 90. Remember, TD says stocks that hit 90 usually go to 100. Nobody ever said investing was easy! Good luck.