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

To: Mr. BSL who wrote (5028)	7/22/1998 7:49:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

INDICATOR OVERVIEW Status Current Week Ago 4 Weeks Ago ------ ------- -------- ----------- Dow Jones Industrials Buy 9128.91 9234.47 8923.87 Nasdaq Composite Buy 1969.70 1994.54 1877.76 NYSE B.P -- Bear Confirmed O's 50.5 % 50.2 % 45.8 % Option B.P. -- Bear Confirmed X's 49.6 % 48.5 % 40.2 % Stocks Above Their 10 Wk M.A. X's 49.1 % 53.2 % 32.1 % Stocks Above Their 30 Wk M.A. X's 46.7 % 49.6 % 42.1 % High - Low Index X's 61.1 % 64.6 % 26.7 %

To: Mr. BSL who wrote (5028)	7/22/1998 8:05:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

From DWA I had to post it since we have been talking about the NYSE BP not reversing today.... Copyright Dorsey Wright & Associates. --- SUMMARY: "SAY IT AIN'T SO JOE" Brokers and managers today might hear this refrain as Mr. Jones calculates his returns for the second quarter. His brokers name might be Joe. "Joe say it ain't so, that I lost 20% the second quarter." "I've been watching CNBC and they say everything is at new highs and Abby Joseph Cohen just raised her sights for the S&P 500". Problem is Mr. Jones didn't own the S&P 500 or the Dow Jones or the Morgan Stanley High Tech Index 35 of premium high tech stocks either. Mr. Jones' Dow Jones is the last 10 stocks his broker recommended to him and it is entirely possible that with the broad averages inching to new highs, he's underwater. It's entirely possible to have a portfolio of stocks that are fundamentally sound but underwater. Keep in mind there is nothing wrong with the fundamental research, we have the best on Wall Street, these stocks have just not performed if they are in the Russell 2000, Wilshire 5000, Value Line or the S&P 600 small cap. All those indexes are down from the reversal in the Optionable Stock Bullish Percent in April. This week the NYSE Bullish Percent still did not reverse. Think about this for a second. The NYSE Index went to a new all time high recently with 24% fewer stocks on buy signals than April and since then the bullish percent has been unable to gain 6% net new buy signals over net new sell signals. This index is trying to tell us something about the economy. It reminds me of October 1989 where it reversed from above 70% going to defense and Bear Alert Status. It was telling us we were on our way to a recession or were in one. Mr. Greenspan didn't warn us of the recession until we had been in it for 6 months and when he did warn of being in a recession, it was at the exact bottom of the market. Could it be we are going to get some sort of correction here bringing us to some sort of bottom and, again, Greenspan, when given the figures from the Commerce Department, will alert us that we are in a recession exactly at the bottom again? I don't know, but it's food for thought. Remember this time a 10% decline equals about 900 points, and 20% like in 1989-1990 equals 1800 points. We aren't saying this will happen, we are simply thinking a few moves ahead in this chess game.