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

To: Lucretius who wrote (2799)	5/5/1998 12:10:00 AM
From: Gottfried	Read Replies (1) \| Respond to of 34810

L.T. and all, Warren isn't worried yet: " Buffett Again Declines to Flinch" At Stock Market's High-Wire Act May 5, 1998 By JAMES P. MILLER Staff Reporter of THE WALL STREET JOURNAL OMAHA, Neb. -- Nearly 600 points later, Warren Buffett is still cautiously optimistic about the stock market's ability to sustain sky-high valuations. In comments to stockholders Monday at Berkshire Hathaway Inc.'s annual meeting here, the legendary investor reiterated, with qualifications, the outlook he enunciated in his annual letter in mid-March: The market isn't overvalued, he said, if interest rates remain low and increasingly efficient U.S. corporations continue to deliver the kind of "extraordinary" return on equity they have delivered in recent years. [snip] subscribers: interactive.wsj.com GM

To: Lucretius who wrote (2799)	5/5/1998 1:03:00 AM
From: Ms. X	Read Replies (4) \| Respond to of 34810

Higher Highs and Higher Lows - From DWA Over the next few weeks we will discuss different chart patterns such as shakeouts, triangles, and bearish signal reversals. When going over each of these patterns we will show what to look for and how to evaluate each situation. Today we want to look at stocks that have formed a series of higher tops and higher bottoms. These patterns are called Bullish Signals. Basically, this is a formation that consist of a continuous stream of the most basic of buy signals: the double top, which is followed by higher bottoms. When looking at stocks with these characteristics you can clearly see that demand is in control and supply is drying up. One other positive aspect of this formation is that it gives an investor many stop points to pick from and he can choose the one that best fits his tolerance for risk. With the market in extended territory and the recent reversal down in the Optional Bullish percent, we have limited our search to those stocks with positive relative strength and who are members of low lying sectors. Below we discuss two stocks that meet these criteria. Pittway Corporation [PRY] manufactures and distributes burglar and commercial fire alarm equipment and other low voltage products. After breaking through an area of consolidation in late May of last year Pittway has been on a nice uptrend ever since. The stock has given six consecutive buy signals all followed by higher bottoms. Relative strength remains strong in a column of X's and on a buy signal suggesting PRY.A is outperforming the market. Pittway belongs to the Protection & Safety sector which is currently in Bull Confirmed 54% making this one of the lower sectors and one in which positions may be initiated. Demand is clearly in control here. The first sign of trouble will be a double bottom break at 68. 78 \| \| 77 \| \| Top 76 \| \| 75 --------------+---------------------+-----X-------- 74 \| \| X 73 \| \| X 4 72 \| \| 3 O X 71 \| \| X O X Med 70 --------------\|-------------------X-\|-X-O-X-------- 69 \| X O X O 68 \| X O X 67 \| A X 1 X 66 \| X O X O 2 Bot 65 --------------\|---------------X-O-X-O-X------------ 64 \| X O C O X 63 \| X O X O 62 \| X O X \| 61 \| 9 O X \| 60 --------------\|-----------X---8-O---\|-------------- 59 \| X O X \| * 58 \| X O X \| * 57 \| X X O X \| * 56 \| 5 O X O \| * 55 ----------C---1---X---X-O-X---------\|------------- 54 X O X O 3 O X O X \| 53 X O X O 2 O X O 7 \| 52 X O X O X O 4 O X * \| 51 X O X O X O X O X * \| 50 ----------X-O-X-O---O-X-6----------\|-------------- 49 9 B O \| O \| 48 X O X \| * \| 47 X O X \| * \| 46 X O A \| * \| 45 ------8-O-X---\|--------------------\|-------------- 44 X X O X \| \| 43 X O X O \| \| 42 X O X * \| \| 41 X O * \| \| 40 --X----------\|---------------------\|-------------- 39 \| \| 38 \| \| Tenet Healthcare Corporation, through its subsidiaries, owns or operates 129 acute-care hospitals and related health-care businesses serving communities in 22 states. As you can see from the chart below demand has been in control of this stock for the past year. THC has given five consecutive buy signals along with a series of higher bottoms. The last buy signal came at 35. After breaking this top Tenet Healthcare continued to rally to 40 marking a new chart high before taking a breather and reversing back down. On the fundamental side THC is rated a +Buy by Goldmanm Sachs & Co. The stock could use a bit more of a pullback before initiating positions but it is one to watch. 43 \| \| \| 42 \| \| \| Top 41 \| \| \| 40 ----------+-------+-----------------------4-------- 39 \| \| 3 O 38 \| \| X O Med 37 \| \| X O 36 \| \| 2 35 ----------+-------+-----------------------X-------- 34 \| \| X 1 33 \| \| X C O X Bot 32 \| \| X O B O X 31 \| \| X X O X O <- Higher bottom 30 ----------\|-------\|-------7---X-O-A-O-X---\|-------- 29 \| X 6 O X O X O X \| 28 \| 2 O 4 X O X 8 X O <- Higher bottom 27 \| X O X O 5 O X O X \| 26 \| X 3 X O X O O \| 25 ----------\|-------X-O---O-X---------------\|------- 24 \| 1 O \| 23 \| 9 * 22 2 X X * \| 21 1 O X O 8 * \| 20 ----------X-O-X-O-X----------------------\|-------- 19.5 X 5 X 7 X \| 19.0 ---------C-O-X-O-X----------------------\|-------- 18.5 B O O \| \| 18.0 ---------A-------\|----------------------\|-------- 17.5 5 X \| \| 17.0 -X---X-O-X-------\|----------------------\|-------- 16.5 4 O X O 9 \| \| 16.0 -X-O-X-O-8-------\|----------------------\|-------- 15.5 X O O X \| \| 15.0 -------O-7------\|-----------------------\|-------- 14.5 6 X * \| \| 14.0 -------O-X------\|-----------------------\|-------- 13.5 O \| \| \| 13.0 --------\|-------\|-----------------------\|-------- 12.5 \| \| \| 12.0 ---------\|-------\|-----------------------\|-------- Market Commentary: Black Gold 5-1-98 Message 4296099 Market Commentary: A New Dawn 4-30-98 Message 4275191