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

To: wizzards wine who wrote (6205)	8/23/1998 1:22:00 PM
From: Bwe	Respond to of 34811

I recently did a p&f analysis for Peoplesoft (PSFT) for the Motley Fool PSFT thread and I repost it here for those who might be interested: >>>PSFT's p&f chart is not so rosy. On the stocks relative strength (RS) chart, the stock has been underperforming the Dow since May. After having given a RS buy in July '97, PSFT turned down this May and has continued it's under performance. PSFT has a rating of B- on it's RS chart which means the stock is on a RS Buy, but in a downtrend. This was also coupled with a break of the Bullish Support Line (BSL), also in May, at $44. The two factors I've just mentioned make finding a buy point while looking for a bottom a difficult exercise. This is what I'm doing as I like the stock and the company's prospects and I'm looking for a good entry point, however, the p&f chart indicates that the time is not yet at hand. The next p&f buy signal would be at $41. I think the stock need more basing action before it can resume it's uptrend. The stock's main obstacle to the upside is the Bearish Resistance Line (BRL) which is currently at $47. This provides the upper end of the stock's current downtrend. the computer software sector is Bear Confirmed at 22%. This means that there are only 22% of stocks in the group remaining with bullish p&f chart patterns. PSFT is not currently among them. However, when the sector does reverse back up (the group needs to move to 28% to move to Bull Alert status), I would expect PSFT to once again regain it's leadership status within the group. For now, the stock is a trading stock and not one you can buy with confidence for the long term with the wind at your back. Important moving averages to keep in mind: 50 day MA: $42.29 150 day MA: $44.56 200 day MA: $41.94 All of these MA's remain a negative in the PSFT technical story. I'll keep the board updated with regard to the stock's p&f progress in the future. For now, the stock remains on my watch list.<<< Best regards, Bruce

To: wizzards wine who wrote (6205)	8/23/1998 3:37:00 PM
From: james ball	Read Replies (1) \| Respond to of 34811

No Wiz, no one has done a result. We have never done that as it is not designed to be something you take blindly. It is to lead someone to do more research on that particular item and them decide for themselves. I think however it would be very good. The whole idea is to stick to the basic concepts we embrace, don't deviate from them and then try to porvide the best ideas we can on any given day. When the market is on defense it lowers the probability of success on a long position but it is not our place to lock up and go home becasue the market is on defense. We also are limited to the nubmber of shorts we recommend as there are very few who do sell short. Especially brokers who handle Mr. Jones's account. They would rather try a well times trade that has a low change of working as the overall market and sector is on defense. We continue to make the best recommendations we can in difficult situations. Someone doing a true track record would not even operate when the odds were against them. The best way to guage records would be to call my money managers in Calif. and get a copy of their returns. Although each account si managed individually, some with more caution and higher cash levels and some more aggressivesly. They pool them all together for one return. One who thoroughly understood our concepts and has all day to live this stuff and had all the resources we have would come up with the same ideas. Nothing magic here. Tom