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

To: HighTech who wrote (5758)	8/12/1998 12:00:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 34811

The rally was very narrow HiTech. I've explained this before but happy to do it again. If a stock is on a buy signal, it has already given its vote towards the NYSE BP. It doesn't matter if it gives 27 buy signals in a row, it only counts as 1. It is either on a buy or a sell signal. During the rally our short term indicators did reverse up and we played the large caps for trades. We noticed it was only the large caps participating in the rally. The broader averages were still moving down. For instance. You have 30 stocks. 5 of those stocks are going gangbusters and making new highs every day while the other 25 are making new lows. Where is it weighted? To the downside. Unless you are invested in specifically those 5, your portfolio got hit. That is what the NYSE BP represents. The rally was brief and the large caps benefited but Mr. Jones portfolio didn't. You can always do trades in any market. The point is knowing where the broader market is headed. We've been right since April. Then 70% of stocks were on buy signals. When the NYSE BP reversed, we went to defense. Now only 28% of stocks are on buy signals. 42% of the stocks reversed on their trend charts and gave new sell signals. Not good. Take care, jan I am

To: HighTech who wrote (5758)	8/13/1998 12:30:00 PM
From: Ms. X	Read Replies (1) \| Respond to of 34811

HT, Here is a comment from Tom regarding your question in 5758. We went long on a short term basis because the percent of 10, high low, opt bull percent and otc bull percent all reversed up. So we always play the short term followed up with stop. If the NYSE reversed up and went to long term bullish then we change to longer term outlook and take stops off. This did not happen so we kept short term. As the stocks we bought short term got stopped out, we went back to cash as the short term indicators reversed over. At that point everything was bearish again so we either play short or sit on the sidelines. In many cases a stock drops from lets say $60 to $35. Big hit. Market consolidates and then rallies. This stock then rallies straight back up to $50. That is a 42% gain but the stock did not exceed a previous top. Stock then falls back to $40. Cools off and then rallies, this time exceeding the previous top at $50, now a buy signal is given and one vote is counted. The first 42% gain was nothing other than a reflex rally and was not counted as anything as no resistance level was broken. Therefore the short term rally you witnessed did not turn enough stocks bullish to reverse the NYSE. T