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

To: genaro who wrote (8111)	10/1/1998 8:16:00 AM
From: Mr. BSL	Read Replies (1) \| Respond to of 34809

Hi Doug. Welcome aboard. <<A stock that has a strong short following is going to have a P & F chart (or any other TA) that will be undiscernible if you do not know the fundamentals.>> No doubt that fundamentals are essential. Once you know the fundamentals and take a position, then TA becomes the bus driver IMO. Look at STEI for example. It has great fundamentals and has given many investors a nice ride up for about 6 years. On Wednesday , it broke its Bullish Support Line. Yesterday it fell apart. I am sure the reason that it is falling apart is because of poor fundamentals or poor fundamentals going forward. The problem is, we don't know what the bad news is yet. We will probably find out today or tomorrow what the bad fundamentals are that are driving this stock down. The bottom line is that if you had a stop in just below the Bullish Support Line, TA would have saved you before the stock tanked. Another way TA would save you in this stock is if you followed Investors Business Daily's method of watching for distribution days. This stock had five distribution days in the eight days before yesterday. Price/Volume/Distribution/Accumulation is excellent TA. However, it is too much work!! Point & Figure is the simplest way i know of following the supply and demand behind a stock. Point & Figure tells you when the smart money is getting out before the poor fundamental news breaks. I look forward to your contributions. Welcome to SI. Dick

To: genaro who wrote (8111)	10/1/1998 11:03:00 AM
From: stan s.	Read Replies (2) \| Respond to of 34809

Doug, fundamentals are completely irrelevant!....................................... Until you get stuck in one of these suckers (neglected to sell on a signal) .....then ya gotta start diggin' to see if there's any hope for recovery i.e. WHY did I buy this piece of crap? Let's face it most FA comes after a purchase and subsequent el tanking of said investment. You can avoid a lot of angst....WITH a discipline to sell! Okay much (some) of the above is hyperbole....but as Duke alluded to, fundamentals or the perceptions of them change rapidly....strict adherrance to any number of TA systems can make make sure YOU are not the one left holding the bag. Gotta be willing....no ...ANXIOUS to sell at the appropriate TA signal though. Selling is your friend..........geeeez. The purpose of this and all TA threads are to find the systems that ultimately work the best. One of the keys is IMO to limit the scope of your selection......reduce the 10,000 or whatever choices to a manageable but varied database. Select from there and dump 'em as the FA deteriorates so they aren't an option. Ummmm, please consider the source when reviewing the above comments! I could be living under a bridge in a torn tee shirt, drinking stale coffee from a chipped cup. Uh, NOT that there's anything wrong with that. Well OKAY....I'm not living under a bridge....yet. Stan