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

To: Al Serrao who wrote (4621)	7/10/1998 6:10:00 PM
From: Bwe	Read Replies (4) \| Respond to of 34811

Chartcraft Weekend Report: -Big drop in Dupont yesterday after a bullish cover story in Barron's a few weeks back. DD dropped below it's June low for a negative. Recall that Compaq was featured on the cover of Forbes early in the year as it's "Company of the Year" and it's been downhill since (until recently). Bullish cover stories in major magazines are often good contrary indicators and often occur right at the top when things look their best. -ASE and OTC advance/decline lines now down below where they were 10 days ago. Another day is needed for confirmation, but if confirmed this is a negative short term trend indicator. This would trim 15 points off Chartcraft's Master Indicator which moved up to +76.5 from +66.5 last week. 0 is neutral and below 0 is a bearish reading. -HPT listed in yesterday's Chartcraft report for Amazon.com and todays action quite negative. The stock gave a p&f sell on it's chart today and the recent high could be the top for a while. For dangers of HPT's, take a look at the p&f charts of MGIC Investor's Corp(MTG) and Advanced Fiber (AFCI). MTG had a HPT in March at $69 and has subsequently visited $56 area. AFCI had HPT in April at $39 and subsequently had a bull trap at $43 in June. AFCI is $20 today. -Big stocks continue to do better than small stocks. -Advisory sentiment getting a bit too bullish for a slight negative. -US $ gave a p&f buy signal -Technical Indications: Bear Traps (many of these stocks should move above a previous top): Cirrus Logic, Ross Stores, Global Marine, Grey Advertising, Centocor, Mediimmune, Orbital Sciences High Pole Tops (Odds favor a move below a previous bottom. Stocks that have HPT's and have bearish RS should be examined very closely): Amerisource Health, Bergen Brunswig, Earthline Network, Servotronics Bull Trap (bearish): Payless Shoes (coming off a HPT in April) at $70) Bullish RS Reversing to an Up Column: Alaska Air, Firstar, Lehman Brothers, Nationsbank, American Eagle Outfitters, Amgen, Comair, Michaels Stores Bearish RS Reversing to a Down Column: GM Class H, Harginger RS Buy Alerts (Notice the two homebuilder stocks that are 1 box from having their RS charts turn bullish. One of my portfolio stocks, Lennar Homes had a RS Buy in March-DWA has the RS buy signal in November): Centex (a Zacks portfolio holding), Kaufman & Broad, Wells Fargo. RS Sell Alerts: Diamond Offshore, Global Industries Maverick Tube, Friede Goldman (Is there no end to the carnage in the oil service sector?), Parker Hannifan, Hilton Hotels, Amresco, Avid Technology Have a great weekend everyone. I turn 38 tomorrow (7/11/60) and I'm thankful for a great many things. This thread and the wonderful readers and contributors have become something I look forward to visiting with and returning to each day. And for that, I say thank you one and all! Bruce