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

To: papi riqui who wrote (3098)	5/21/1998 4:03:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 34810

Hi Papi, The oil service sector did reverse down this week. Just last night at the seminar, Tammy (VP at DWA) discussed different sectors and how to determine the risk. Obviously with the sector reversing down, it is a signal for you to watch your positions. This doesn't mean run out and sell them but watch them and decide what risk you are willing to take. The oil index is still positive so this is a good sign. As an example, the banking index is negative, the sector is in O's and a lot of the stocks are breaking down. This tells you if you have banking issues to really be careful. Oil service has only reversed but no sell signal. Still watch it with the market risk so high. FGII: RS still strong. Breaks down at 26. On a high pole. Decide risk level. VRC: RS still strong. Breaks downa at 23. Just gave a bullish signal reversal. MDCO: RS is negative. Breaks down at 18.5. Right at support at 19. Papi, I apologize. I'm having trouble accessing charts. Can you remind me to look at GLM, DO and CDG for you later. What I would like to stress here is that the market is way over extended. There are apt to be pullbacks, this is normal. If the market declines even the best stocks will decline so that is why I say determine your risk. I'm sure there is nothing wrong with these stocks fundamentally and technically they aren't doing that bad. Still oil and oil service is one of the better places to be in. Think of it this way. IF the market declines 20% and your stock only declines 10% you have still outperformed the market. I know people don't like to hear that but that is reality. I'm happy to look at the stocks for you later so you know where the risk levels are. Take care, Jan I am