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

To: Ms. X who wrote (3783)	6/16/1998 9:24:00 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 34811

Hey Jan , just read this info on DW site . Are they saying buy select tech stocks ? Because I'm ready . Jim TECHNOLOGY RALLY ------------------------------------------------------------------------ We said that today we would have criteria for selecting stocks to short discussed. However, yesterday we began to see the technology sectors rally and they are very washed out on a technical basis so we think it is more important to discuss the technology area today. In tomorrow's column we will discussion shorting stocks. On Tuesday we began to see the technology sectors rally. The Computer, Software and Semiconductor sectors are three of the most oversold groups on their sector bullish percent charts. When sectors go below 30% on their sector bullish percent charts, it presents opportunity. The Semiconductor sector will likely come in around 16% and that puts the group in area where we have seen good rallies from. Remember that sectors rotate in and out of season just like the produce in the supermarket does. Individual sectors can bottom out before the market as a whole does. This is typical of the technology area as it tends to peak before the rest of the market and bottom before the rest of the market. In fact, the PHLX Semiconductor Index (SOX) is off 30% from its March chart highs of 330 and well below its August 1996 highs of 405. You see, this group has gone through its own bear market. There are still some great names in the technology area that have held up very well. When initiating positions in the technology area, look for stocks that have remained above their bullish support lines, have pulled back and have good chart patterns. Here is a list of names that you might consider on a technical basis. Remember that this is only one hand on the piano and you must check the fundamentals so both hands are planning the piano. Some Technology Names to Consider: (be sure to do your fundamental homework -- these stocks are technically sound) AAPL Apple Computer Inc APCC American PWR Conversion ASND Ascend Communications Inc. AUD Automatic Data Processing Inc BMCS BMC Software Inc BOOL Boole & Babbage Inc CAER Caere Corp CPQ Compaq Computer Corp CSC Computer Sciences Corp CSCO Cisco Systems Inc. DRTE Dendrite International Inc ELNT Elantec Semiconductor Inc EMC Emc Corp MA FORE Fore Systems Inc GTW Gateway 2000 Inc HBOC Hbo & Co IM Ingram Micro KOPN Kopin Corporation MACR Macromedia Inc MGXI Micrografx Inc MSFT Microsoft -- just broke out of a bullish triangle pattern yesterday NCR NCR Corporation PMCS PMC Sierra Inc SDLI SDL Inc VTSS Vitesse Semiconductor Corp XYLN Xylan Corporation BMC SOFTWARE (BMCS) TREND CHART 53 \| 52 \| 51 \| X 50 -------------------------------------+-------------------X O -------------- 49 \| X X O 48 \| X O 5 X O X 47 \| X O X O X X O X 46 \| X O X O X O X X O X 45 -------------------------------------+---X O X O X O X O X O X -------- Med 44 \| X O O X O X O X O 43 \| 4 O X O 6 42 \| X O 41 \| 3 40 -------------------------------------+---X -------------------------------- 39 \| X * 38 \| X * 37 \| X * 36 \| X * 35 ---------------------------------X --+---2 ----------* -------------------- 34 9 X C O 1 X * Bot 33 X O X O X O X O X * 32 X O B X O X O X O X * 31 X 8 O X O X O O X O X * 30 -----------------7 O X A X O X ----O X O --* ------------------------------ 29 X X O X O X O X O X * 28 X X O X O O O O \| * 27 X O X O X * 26 X O X O * \| 25 -----4 --5 6 --------------------* --+------------------------------------- 24 3 X O X * \| 23 X O X O X * \| 22 X O X O X * \| 21 O O X * \| 20 -------O --------------* ------------+------------------------------------- While we make every effort to be free of errors on these charts, they are derived from data from other sources. We believe these sources to be reliable but we cannot guarantee their accuracy.