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

To: iGregor who wrote (4763)	7/15/1998 10:04:00 AM
From: wizzards wine	Read Replies (1) \| Respond to of 34811

East Pole just keep an eye open...caution as that rally did little to affect the NYSEBP... Stocks giving new buy vs sell signals were almost in balance with the new buys just exceeding the new sells. Later Preston

To: iGregor who wrote (4763)	7/15/1998 10:20:00 AM
From: Ms. X	Respond to of 34811

East, Whenever the NYSEBP is in a column of O's that keeps our team on defense. This does not mean you can not purchase stocks during this time, you just need to add caution while doing so. You have seen recently the Dow hit new highs moving up 145+ yesterday and another 50+ at this writing. However, with the Dow at new highs, the NYSEBP is still negative and in the low 50% range. Last time the Dow was at a high, the NYSEBP was at 74% or so. Think of it. In April 74% of the stocks underlying the NYSEBP were on Point and Figure buy signals, now only 51%. That tells you something. Very few are carrying this rally. I'm sure many are looking in dismay at CNBC every morning listening to Joe and the boys high five each other over the Dow's recent climb. Meanwhile folks are seeing their portfolio value shrink. The Dow bug doesn't accurately represent the market. It is only 30 stocks and not all 30 have to move to pop the number. We would do better if we could have the NYSEBP real time :-) Than at least the average portfolio would have representation, not just the Dow 30. So, can you and how do you look for purchases? Yes, find the sectors that have gone through their reversal and are starting to show demand. A few have reversed up already and I have been suggesting stocks in these areas. Look for strong RS, above trend line, higher bottoms and buy signals. If the Telephone sector just reversed up, look for the above criteria and consider those stocks (checking FA of course) for purchase. Sector rotation is critical in selecting stock. That is why we get excited when a Bull Alert comes into play. Remember that being on defense means knowing exactly what your positions are doing at all times. Hope that helped some, Jan I am