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

To: Giordano Bruno who wrote (3702)	6/15/1998 7:49:00 PM
From: David N. Jones	Respond to of 34811

Hi Jim, I agree that selling short seems to be harder to initiate that long positions. The least nerve racking method of selling short I have seen is p&f. As with most of p&f it is about stacking the odds in your favour. Look for stocks trading below their bearish resistance line with relative strength in a column of O's. Be guided also by the broader market indicators such as the NYSEBP. It is quite uncanny to see a chart where the stock price has a column of X's running up to it's bearish resistance line and then reversing into a column of O,s making a series lower bottoms and tops. My first choice of books would be Tom Dorsey's Point & Figure Charting which covers the subject and sets forth a clear method of managing the trade. The other book I would recommend is The Art of Short Selling by Kathryn Staley. Staley's book approaches the subject from the fundamental side which helps gives you a better understanding of why supply and demand make those X's & O,s form the bearish patterns that P&F'ers look for. Take care david