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

To: Judy who wrote (6737)	9/3/1998 3:17:00 PM
From: wizzards wine	Read Replies (1) \| Respond to of 34808

Hi Judy, I looked at CMB and MER.... CMB is RS Buy in X's, broke down mid July and has given 4 DBS, is below the trend line at 68, and has just reversed back into X's up from a low of 50 to currently 57 in X's... MER is RS buy in O's, below trendline at 94, just reversed up into X's from a low of 61 to 71 in X's... As to a further selloff, we will know after tomorrow for the short term... Thanks for the link to your comments to James Struss. Later Preston

To: Judy who wrote (6737)	9/3/1998 3:38:00 PM
From: Jorj X Mckie	Read Replies (4) \| Respond to of 34808

Hi Judy, Interesting the differing views of where the tops will be and when the main selloff will be. Several were calling for a top today with a selloff tomorrow. I have taken to acting a day before the "whisper consensus" (my own polling from the threads). I got into puts on YHOO, AMZN, LCOS and RMBS all around the same time yesterday (I posted on this thread when I bought the LCOS and YHOO). Doesn't look like I am going to make my targets today, so I hope you are wrong about tomorrow being anticlimatic. Hope all is well, Tom

To: Judy who wrote (6737)	9/5/1998 11:39:00 AM
From: Bwe	Respond to of 34808

Judy, I've been contributing to AOL's Chase Manhattan message board for quite a while now. Here's the latest p&f post I wrote on the board. In the post I concentrated on the impending reversal on the stock's RS chart: RS is one of the most important tools p&f chartists use. We use RS together with the Bullish Support Line (the long term uptrend line) to take the long term temperature of a stock. We use it to decide whether a stock is a good one to own for the long term. By long term I mean around 2 - 2 1/2 years. P&F RS charts are updated once a week because of their long term outlook. If I were to update CMB's RS chart today, the stock would show a reversal to a down column for the first time since March, 1995. A column change on a RS chart is noteworthy. If we only waited for buy and sell signals on a RS chart, too much money would have been lost to make it worthwhile. So a column change which indicates that a stock is likely to outperform (if a column change moves into a column of X's) or likely to underperform (moves into an O column) is an important event for a stock. The RS status is compared with CMB's BSL, which was broken at $68 in early August. CMB is now a stock that p&f chartist's would not buy for the long term. RS in p&f is computed differently than the RS ranking in Investor's Business Daily. IBD compares a stock's performance against all other stocks in their tables. P&F RS compares a stock's performance to the Dow. We can then compare how a stock is doing vs the market as measured by the Dow. The Dow was chosen as the proxy for the market years ago when RS became an essential part of a p&fer's toolbox. Others argue that the S&P 500 should be the proxy for the market, but I'll stick with the time tested computation. B1998K mentioned the recent lowering of CMB's earnings estimates. I wrote on 8/21 how in a recent article, Cramer pointed out how stocks are excellent forecasters of the future and it looks like the stock prices of the financials were right on the money in this area. Support for CMB is at $47, $42 and then $37. Take care, Bruce