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

To: Bwe who wrote (4519)	7/8/1998 4:22:00 PM
From: Bwe	Read Replies (2) \| Respond to of 34811

I own Biogen (BGEN) in my investment club account and I noticed that it was a pick in portfolio #4 of our stock picking contest. I just posted some p&f work for the BGEN thread and I though it might be of interest to otheres on the board. I've edited the post a bit for our thread: I last posted Biogen's point & figure (p&f) technicals on June 21 and it's been onward and upward on BGEN's p&f chart. This will serve as the latest BGEN p&f update and for more background technical information, please refer to Post # 676. P&F charting concerns itself with the ongoing tug of war between supply and demand for stocks. Demand for BGEN, at this time, is clearly winning the battle. BGEN is currently on a buy signal on it's chart from June at $48. The stock has risen 9 straight boxes ($44-$52) on it's chart without having a reversal of at least $3. That would cause the stock to move into a column of O's which represents declining stock prices. The current price objective is $68. Currently only 30% of all Biotech stocks are on p&f buy signals and this is another indication that BGEN is a leader in it's group and also is a market leader. As I've previously pointed out, Biogen gave a relative strength buy signal in March at $48 and stocks with bullish RS will likely outperform the market for the next few years. Biogen is now at a level it was last at in February '97. The overhead supply of unhappy investors who bought at the $52 level a year and a half ago and are looking to get out even will likely exaust itself over the next few days or weeks. P&F chartists draw trend lines to get an idea of where major support exists and also, to get an idea of where a rally might run into some trouble. BGEN's major support (Bullish Support Line/BSL) is currently at $45. A secondary trend line, the Bullish Resistance Line (brl) is drawn from the start of the base of stock prices from April-May '97 at $34. That resistance line is currently waiting at $66. Not so coincidentally, that's $2 below the price target of $68. On the downside, watch $47. That would put the stock in a negative pattern called a High Pole Top. If that were to occur, there's an 80% chance the stock would correct down to the low $40's. Looking good. Let's see how the stock reacts to the earnings announcement. An axiom of p&f chartists is "News on stocks is not important. How the stock reacts to it is important". Take care, Bruce

To: Bwe who wrote (4519)	7/15/1998 2:04:00 PM
From: Bwe	Read Replies (4) \| Respond to of 34811

Chartcraft Report: I've linked today's report with last Wednesday's report for easy reference. This will make it easier to compare the sentiment numbers and sector action on a week to week basis. Now, on to the Chartcraft Report for Wednesday, July 15, 1998: -NYSE Bullish % unchanged this week at 50.2%. Just about an equal number of buys and sells and this is a bit of a divergence with the Dow which is making new highs. As Jan pointed out, the Generals are making new highs while many of the stocks are stuck in the mud with bearish chart patterns. The NYSEBP is just suffering from a lack of buy signals on individual stocks. -Advisory Sentiment: Bulls: 52% Bears: 24% Big jump in bullish sentiment and drop in bearish advisors is now a negative. This indicator is now only 1.4% away on the bearish side from 5 year and 1 year lows in bearish sentiment. On April 6 of this year, the number of bearish advisors hit a 5 year low of 22.6%. The NYSEBP turned negative 5 weeks later and we all know what happened thereafter. Advisory sentiment should now be watched carefully. -Portfolio Moves: -Sold Gulfstream Aerospace after $50 target was hit and a 50% gain achieved in less than 6 months. With the NYSEBP in a bearish mode, Chartcraft always advises selling stocks that reach up side price objectives. I adopted Chartcraft's policy years ago of buying stocks that have the potential to rise 50% in a 12-18 month time frame. -Portfolio additions: -Taiwan Equity Fund (TWN):the stock has recently had a selling -Broad Industry Group News: 7 Sectors Up 6 Sectors Down (despite new highs in the Dow) -Broad Industry Group Sum moved up to (-19.0) from a corrected (-20.5). A move to (-17) would cause the chart to reverse up. . Groups Moving Up: * = Status Change Electronics 30% ---> 32% [Bull Alert] Banks 58% ---> 60% [Bear Correction] Insurance 62% ---> 64% [Bear Correction] Wall Street 58% ---> 62% [Bear correction] Buildings 52% ---> 60% [Bull Confirmed]* Computers 38% ---> 40% [Bull Confirmed Drugs 36% ---> 42% [Bear Correction]* Groups Moving Down: Food & Bev 52% ---> 48% [Bull Correction] Forest Products 34%% ---> 32% [Bear Confirmed] Oil Service 24% ---> 22% [Bear Confirmed] Steel & Iron 36% ---> 32% [Bear Confirmed] Non Ferous Metals 40% ---> 38% [Bear Confirmed] Gas Utilities 60% ---> 58% [Bear Confirmed] -RS Buy Signals: Abbott Labs, Egghead, Comcast, Fingerhut, Neurex -RS Sell Signals: What would a week be without a weekly dose of RS Sells in the Oil Service Group......{Diamond Offshore, Friede Goldman, Seakor Holdings, Varco, Cal Dive}, Parker Hannifan, Cytec, KLA Instruments, Avid Technologies, Stryker Properites, Novellus ,Systems, Photronics -Intel rallied through a downtrend line -Weekly Data: NYSE Bullish %: 50.2 OTCBP: 46.5 ASEBP: 44.8 DOWBP: 56.7 Option StocksBP: 48.8 Option Stocks % Above 10 Week MA: 52.5 30 Week MA: 54.2 NYSE % Above 10 Week MA: 53.19 NYSE % Above 30 Week MA: 49.61 NYSE High Low Index: 65.3 Have a great day, everybody. Bruce