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

To: Gottfried who wrote (7442)	9/19/1998 6:48:00 AM
From: Bwe	Read Replies (5) \| Respond to of 34811

Crude chart updates: Yesterday's action on all three crude charts was an extremely bullish follow through to the breaking of their respective Bearish Resistance Lines (BRL-major long term downtrend lines), and for the October crude chart, the start of a new uptrend. Few things are more bullish on p&f charts than the breaking of long term downtrend lines with a bullish buy signal. Here's a recap of yesterday's action: October Crude gave that all important Triple Top p&f buy signal at $15.00 and stands at $15.50 as the last notation on it's p&f chart. October crude has now decisively broken the BRL that had been in place since 10/97 at $20.50. The chart's RS chart has also reversed into an up column for the first time since 6/97. The downtrend on the chart has officially been broken. November Crude continued it's bullish action yesterday by breaking through two previous tops at $15.10 and has now given it's second quadruple top buy signal in September. The BRL is now history (as of Thursday) and consecutive buy signals is evidence of bullish chart action. The December chart gave a bullish triple top buy and moved to $15.80. The BRL is also history on this chart. As all most surely know by this point, the price of oil means everything to the Oil and Oil Service sector stocks. I believe yesterday's price action for the commodity portends positive things for the underlying stocks in both sectors. Gottfried, as you correctly point out, presently, falling dayrates and increased rig capacity are the fundamental order of the day, however, when the Oil Service BP reversed down from 80% in October '97, the fundamental backdrop was one of rising dayrates and rig shortages. As you know, the Bullish %'s look ahead, not behind, and the reversal to Bull Alert status suggests a change in the fundamental story for the sector that is currently not factored into the oil service stocks at the present time. I think it's important to listen to what the p&f indicators are saying and trust, as Tom always says, that the Bullish %'s have read all the newspapers and all the analyst reports for you and are providing their recommendation in the simplest way possible. The Bullish %'s look ahead and you must trust what they're saying even if the current depressing fundamental story conflicts with the bullish signals currently being given off by the group. Best of investing to all and have a great weekend! Bruce