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

To: wizzards wine who wrote (4898)	7/20/1998 6:36:00 AM
From: Bwe	Respond to of 34811

Chartcraft Report: -Daily High low ratio has stalled below 70% after showing positive action by turning up from oversold levels below 30% -Only the NYSE a/d line is above where it was 10 days ago. OTC and ASE a/d lines are below. This is moderately bearish -Value Line and S&P 500 spread is largest ever at -218.45 from -120 in May. Value Line has stalled and this wide spread is another indicator of how much better larger stocks are doing than smaller ones. -Indicator's are bullish short term and have not yet reached oversold levels. -The weekly Master Indicator pulled back to +47.5 from +76.5 The indicator is bullish but less so. -NYSEBP is particularly disappointing in the lack of buy signals. Same for stocks that have moved above their own 10 and 30 week MA's. -Discussed the Cabot Market Letter's "two second indicator" that gauges the health of the market by looking at the number of new lows on the NYSE. 40 is the key number to look for. When the market is making new highs and the number of new lows expand to 40 and over it's a danger sign. On Tuesday there were 84 new lows, Wednesday there were 70, 61 on Thursday, and 50 on Friday. Cabot has found the 40 new low number to be a key level while the market is breaking records. It's one more divergence to be aware of for the defensive argument. -Technical Indications: Bear Traps (bullish): Transocean Offshore, Argentina Fund Shakeout Formation bullish): AMR (American just broke it's BSL that went back to March at $60. The first 3 box reversal should provide a good buying opportunity if you're a believer in the airline sector. I happen to be as I own Delta and US Air) Bull Traps (bearish): Alamo Group High Pole Tops (bearish with bullish RS, very bearish with bearish RS): VISX, Geotel Communications, Cintas, Egghead, High Pole at the Bearish Resistance Line (very bearish): Nacco Industries, Platinum Entertainment Broke Long Term Uptrend Line: Dupont Bullish RS Reversing to an Up Column: Citicorp, Enron, Guidant, Snyder Communications, Arterial Vascular, E Trade, Platinum Tech Bearish RS Reversing into a Down Column: Crompton Knowl, Dresser, Illanova, Int. Game Tech, Int. Mutifoods, Filene's Basement, Winstar RS Buy Alerts: Circuit City Stores, Metamor World RS Sell Alerts: Atwood Ocean, Deere, Dover, Noble Drilling, Smith Int, Tuboscope, Rohm & Haas, Tech Solutions, Thermo Instruments "Dow was up 160 points from a week ago and close of 9245 is very close to 50 x 150 target of 9250 and 20 x 60 target of 9300. Danger point now 8900." Michael Burke Enjoy the week ahead. Bruce