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

To: Giordano Bruno who wrote (6440)	8/27/1998 9:14:00 PM
From: Ms. X	Respond to of 34811

I was looking around the DWA site at the different indicators and indexes to see what I could report. Most you have heard already and I imagine nothing would come as a surprise to you. I don't have the update on the NYSE BP and fellow indicators but they will be available tomorrow morning. I'll be gone but Preston should be able to give you some idea. However, it isn't of much concern since you know the obvious - defense. This thread has been very calm and Tom commented that we are the last group he would worry about. That is a high compliment I hope you realize. Once you have gone to defense, you are prepared for days like today and can weather the market volatility calmly. I know a lot of you would like to know when the market will turn back up and as always we have to say..don't know. However, one thing you should have learned is to trust the indicators. If they say defense - be defensive. When they move offensive - we dust off the football and start running some plays (and man, will we have fun). I had a lot of people ask me about the sensitivity of the NYSE BP. Most were concerned that it wouldn't get them in at the bottom should the market rally. My response was always "How do you know it is the bottom?" Today's action emphasizes this point perfectly. We had a short pop in the Dow which looked like a rally but no reversal in the NYSE BP. People got anxious thinking they were going to miss a big run up. Meanwhile, our indicators were still moving lower. We were able to "play" some issues but as a whole, we stayed cash. The Dow looked impressive, the NYSE BP didn't. Which was correct? The NYSE BP. We are calm because we trusted the NYSE BP. It makes no sense to try and guess the bottom when the flip side is - it isn't the bottom and things can get worse. So, you don't get the absolute bottom but you sleep comfortably. If you thought it was the bottom at 38% with no buy signal confirming this, you are not sleeping comfortably tonight. By the thread being so quiet (relatively) I know you all are doing OK. And this, is why I started this and why I love P&F :-) Yay. I told someone it was the parasympathetic way of investing. It is waaayyy so true!!!