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

To: wizzards wine who wrote (4904)	7/20/1998 11:47:00 AM
From: Al Serrao	Respond to of 34811

Thanks Preston, what do you think of Lucy now LU?

To: wizzards wine who wrote (4904)	7/20/1998 12:19:00 PM
From: Dennis J.	Read Replies (2) \| Respond to of 34811

Are you being a mite conservative on your PFE outlook? P&F is a GREAT methodology for stock selection when you are looking for new ideas, or for long-term entry and exit decisions. However, it doesn't handle trending stocks all that well. Thus, I would like your comments on stocks to be sprinkled with a little TA, sort of as some frosting on the cake. PFE has had a strong run, up 10 or so last week. It seems to be resting before an assault on 120+ and new highs. It is trending above its 4,9 and 18 week MA's. Daily analysis shows a 3-day decline, crossing the 4-day MA and touching the 9-day MA. Support should come from the June high at 115, and the 18-day MA at 114. I would "bottom-fish" here. A move below 114 breaks the 18-day MA (and 20-day MA's for others, and would have bearish implications for the near-term. Other TA's are positive: money flow, on-balance volume, and stochastics beginning to look again like a momentum stock. I would look to buy it here, since it is up today in a bit of a down market. I tried to buy SGP "cheaper" at 86, only to miss it and watch it pass through the century mark without me. Painful! Didn't let that happen with LU at the same price, and am now gratefully selling half the position. My point is, don't only rely on P&F for short term analysis of high RS stocks. JMHOO. Dennis