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To: DanZ who wrote (16175)	9/6/1998 1:09:00 PM
From: Larry S.	Read Replies (2) \| Respond to of 53068

Dan, LSI and VLSI look about as oversold as any stock that i have seen, however that does not mean they are going to just reverse and go up. They both announced negative earnings projections, which is kiss of death. LSI has a relative strength of about 15, which is ridiculously oversold. stochastics are bottoming, but have bottomed before without a rise in stock price. VLSI looks stronger on a technical basis, primarily because of the total destruction of the stock price. PIR, as much as it has gone down, looks the weakest of the three. It sure is more fun when the stocks go up. larrry

To: DanZ who wrote (16175)	9/6/1998 6:34:00 PM
From: Iceberg	Read Replies (1) \| Respond to of 53068

>The spread between the -DI and +DI is also important, with wider spreads more coincident with countertrend moves. >I'd appreciate input from others. Dan, My understanding is that it is the crossovers of +DI and -DI that give buy and sell signals. For example, on a daily chart for LSI, +DI fell below [crossed over]-DI on or about the 10th or 11th of August, giving a sell signal. Similarly, for VLSI +DI fell below [crossed over]-DI on or about the 19th or 20th of August giving a sell signal. Money could have been made by selling, or going short at either of those two times. Right now, for both stocks, +DI and -DI are about as far from a crossover as is possible. Wouldn't that mean both stocks are presently far from giving buy/sell signals based upon the directional system - - IF it's the crossovers that give the signals? In other words, the time to buy will be when the +DI [which is presently below the -DI, and is on the floor for each of these stocks] crosses back over the -DI? In any case, this is an unusual configuration for both stocks. My read on it is that now is not the time to be buying based upon my understanding of these indicators. But I could certainly be wrong as I'm no expert on this stuff. I would be interested to see what you think about +DI and -DI crossovers. Thanks. Ice