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

To: FishbackJ who wrote (3725)	6/15/1998 8:19:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 34811

Hi Dick, Excellent question and I had to go to the Big Guy for the answer: The Dow Jones and the S&P 500 are virtually interchangeable on balance. They track very closely. Therefore either could be used. The Dow Jones has been used for many years and when it began it was at a low level. ,Now that it is so high the S&P 500 would probably be a better calculation simply because it would give you more of a chart. When we multiplied the rs number using the DOW by 10,000 rather than the 1000 now the chart was extremely active and that was not good. Right now we divide by the Dow and multiply by 1000. It would probably be better simply to use the S&P 500 as it is in the 1000 range now. We are going to come out with an RS chart with the S&P 500 where you would simply push another button on the chart to get it. We are in the process of creating our own indexes by taking the highest 30 cap in each sector and creating an index then doing an RS chart on that vs Dow and S&P. Lots of new stuff coming. Watch for some research on Spin-off's in the "From the Analyst" in the daily research. We gauge risk with the Bullish Percents. We only use the trend charts of the broad averages to do counts on them. The current count brings the Dow Jones down to around the 8200 level. A breakout in the trend chart of the Dow would not cause us to go long the market. It will take a reversal in the Option Stock Bullish Percent. Tom Dorsey