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

To: JHR who wrote (3325)	6/2/1998 11:31:00 AM
From: Ms. X	Read Replies (1) \| Respond to of 34811

Hi JHR, We went on defense a while back as I'm sure you know when the NYSEBP and the other indicators turned south. This put us on alert for every sector. Since then, we have seen most sectors turn and this includes oil and oil service. This isn't surprising given the overvalued market. I had said sometime ago that oil was a good place to be and in some respects that hasn't changed however, the sector is moving down. We suggested covering positions (everywhere) about 1-2 months back. The momentums in the oils categories weren't as negative as other sectors. With the market being so negative and advance decline lines giving sell signals, every sector should be looked at carefully. For the stocks in particular. RIG: Has pulled right to support but will break the bullish support line at 45. This would be your stop point. RS is still positive but weakening. NE: Has pulled back close to support but seems to be holding well. The stop would be 26, a violation of the bullish support line. GLM: Has been trading sideways. It now sits at support. 20 breaks a spread double bottom and that would be the stop. Now, you have to make the decision of what a stop means to you. It can mean cover, sell, insure etc. When stocks break their bullish support line, it usually means it has more downside to go. On a positive note, RIG, NE have held that line during this horrible time. Lets hope that news stays good for you. Take care, hope you are well, Jan I am