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

To: Jack Chen who wrote (2393)	4/19/1998 11:35:00 AM
From: wizzards wine	Read Replies (1) \| Respond to of 34812

Hi Jack, TXI I would agree kind of extended and would look for a pull back. On DF, what is it that you see changing the RS to X's. The last two O's have been lower the the previous ones. Also on JNJ, RS sell in O's and a triple bottom sell on 4-15. 50 day MA 73.06 150 day MA 66.07 200 day MA 64.57 daily and weekly MA are negative and the RS column is going lower in a column of O's. I like JNJ so please tell me what you see that is positive other that it is still above the bullish support line way down at 60, a 16% move. Also noting that the drug sector just flipped to Bullish Corrected from 62 to 56. TIA Later Preston

To: Jack Chen who wrote (2393)	4/19/1998 9:11:00 PM
From: Dennis J.	Read Replies (2) \| Respond to of 34812

Timing a buy with p&f Hi Jack, Tom Dorsey's book on p&f has taught me to cheat a little on breakouts to max your profit potential. If you already know what you like (big if), then buying on a trend line makes sense. By doing so, you are expecting a breakout to the upside, but you don't know the exact timing. In return for the early buy, you gain perhaps several points. As an example, about a month ago, I bought AFCI Jun 30 calls when the stock was 'resting near support' at about 28-29, on the belief that the multi-top breakout at 32 would be confirmed. If I had waited for confirmation, I probably could not have gotten in below about 35-36. Big reward, and worth the risk! FNM and FRE should both move higher as interest rates move still lower. Looks like a good play here, but would be careful to wait out this next correction, which appears imminent. Regards, Dennis