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

To: Mr. BSL who wrote (2592)	4/24/1998 10:39:00 AM
From: Ms. X	Read Replies (1) \| Respond to of 34808

Interest Rates. Are they heading up? I have here a few charts that clue us into the interest rate future. We are seeing some deterioration but no definite signals of yet but enough deterioration to warrant a discussion. Below is the TYX (30 year yield index), the UTY (PHLX Utility index) and the Dow Jones Bond Average (DJBB). Combine these charts and the current action in gold and oil, you can make a case for upcoming higher interest rates. All charts Copyright Dorsey Wright & Associates. TYX (30 year yield index) Good resistance at the 6% level. A break of the brl would be a strong signal to the upside. This would indicate higher yields. 61.25----------------- ------------------------- 61.00 * 60.75 X * 60.50 X O * 60.25 3 O * 60.00-------------X O ----------* --<--This would break brl and major resistance. 59.75 X X O X X <--restance and recent move 59.50 X O X X O X O X X 59.25 X O X O X O X X O X O X 59.00 X O 2 O X O X O X 4 X O X Med 58.75 ----X O X O X O X O X O X O X ------------- 58.50 X O X O X O O O X O 58.25 X O O X O X 58.00 X X O O X 57.75 X O X O X 57.50 X O X ----------------O ------------------- 57.25 O X 57.00 O X 56.75 O 56.50 UTY: Tom always says "Watch the Utilities" Usually, when they make a top it is prior to the market making a top. UTY has obviously reversed down but it could be the start of a shakeout and it can reverse up to break a triple top from here. If it continues down, that is very negative for market and rates. 332 Top 330 -----------------------------------?-<--Could still reverse up 328 X X to make a triple top 326 X O X O 324 X O X O 322 X O 4 320 -------------------------+-X ----O -<--First sell signal 318 \| X O in a while. 316 \| X O 314 \| X O Med 312 \| X O <--Big shakeout 310 -----------------------X \| X ----------------- 308 X O X 306 X O 3 304 X 1 2 302 X O X 300 ---------- ------------X O X ----------------- 298 X O Bot 296 X \| <--Next double bottom sell. 294 X \| 292 C X \| 290 ---------- -- ----X O X \| ----------------- 288 X O X \| 286 X O \| 284 X \| 282 X \| 280 -------------------X ----+-------------------- 278 X \| 276 X \| 274 X \| 272 X X X \| 270 -------A --X O B O X -- \| ----------------- 268 X O X O X O X \| * 266 X O X O X O \| * DJBB: No deterioration here yet. This is the longer term indicator. Current reading 105.19 106.0------------+---------+---------------- 105.8 \| \| 105.6 \| \| Top 105.4 \| X 105.2 \| 1 Med 105.0 -----------+---------X --------------- 104.8 \| C <--Reversal here 104.6 \| X B Bot 104.4 \| X O A 104.2 \| X O X 104.0 -----X ----\| ----X 8 X --------------- 103.8 X O X \| X O X 103.6 X O X O 2 7 9 \| 103.4 X C X O X O X \| <--First sell signal 103.2 B O 1 X O X \| 103.0 -----X ----O --3 X --\| --------------- 102.8 A \| O X \| 102.6 X X \| O X \| 102.4 X O X \| O 6 \| 102.2 X O X \| O X \| 102.0 -8 O X ----\| --4 X --\| --------------- 101.8 X O X \| O 5 \| 101.6 X 9 X \| O X \| 101.4 X O \| O X \| 101.2 X \| O \| 101.0 ----------\| --------\| ---------------

To: Mr. BSL who wrote (2592)	4/24/1998 3:21:00 PM
From: Ms. X	Respond to of 34808

Duke, from Tom regarding AMEX SPDRS... I called the Amex and could not get my friend who is one of the powers on this project. The one I talked to didn't even tell me that the computer spider was coming out. I am not sure of the prices, but will find out on Monday. T

To: Mr. BSL who wrote (2592)	4/24/1998 8:25:00 PM
From: Ms. X	Read Replies (4) \| Respond to of 34808

New Index on PHLX for Box makers, BMX Last Thursday, April 23rd, the Philadelphia Stock Exchange introduced a new sector index, the PHLX Computer Box Maker Sector (BMX). This is the only index that is a true barometer of just the companies involved in the assembly and manufacture of computers. This is a price-weighted index so one stock can't exert too much influence over the index. The index is composed of nine companies involved in the manufacture, marketing, and support of desktop and notebook personal computers and fault tolerant systems. The nine stocks comprising the index are as follows: Apple Computer AAPL Compaq Computer CPQ Dell Computer DELL Gateway 2000, Inc. GTW Hewlett Packard HWP International Business Machines IBM Micron Technology MU Sun Microsystems SUNW UNISYS Corporation UIS Here are some more specifics about the trading features of the BMX: Trading Symbol: BMX Alternate Symbols: BMU, BMV Settlement Value Symbol:BMZ Exercise Style: European - may be exercised only on the last business day before expiration. Expiration Date: Saturday following the third Friday of the expiration month Settlement: Cash Settlement Value for expiring contracts: Based on the opening prices of the component stocks on the last trading day prior to expiration. Last Trading Day: Thursday before the third Friday of the expiration month Expiring Contracts Index Multiplier: $100 (i.e. one contract - index value X 100)