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

To: Judy who wrote (8121)	10/1/1998 1:34:00 PM
From: Dennis J.	Respond to of 34810

EMC <<It is one of the stocks on my list for a potential long trade as the market turns up again.>> My sentiments also. Will you let us know when? Are you bottom-fishing, or looking for a TA signal? Thanks, Dennis

To: Judy who wrote (8121)	10/1/1998 9:19:00 PM
From: Bwe	Respond to of 34810

'evening, Judy. EMC is in a good p&f pattern called a Bullish Shakeout formation. The buy signal is the first three box reversal from the low. At $53 on it's p&f chart, from here, the buy signal would be $56. As might be inferred from the patterns name, the stock has given a sell signal at $59 and is in the process of "shaking out" traders and short term players who have a short term horizon. EMC is trading above it's BSL (it's long term support Line), that was drawn in after the stock resumed it's uptrend after reversing up after bottoming at $44. This is important support. The market backdrop, according to the main p&f indicators, is in a bullish mode this time around, and always remember, EMC has very bullish relative strength. When the market does turn up, history has shown that EMC will lead to the upside. I'm getting tired now, however, tomorrow morning I'll take a look at PFE's chart and post my thoughts. Your pal, Bruce PS- Anything jump out at you in today's action?

To: Judy who wrote (8121)	10/1/1998 9:33:00 PM
From: Bwe	Read Replies (1) \| Respond to of 34810

One more thing before I turn in, Judy. The oil patch rocked and rolled downhill today but my read ot the December p&f chart might be of interest. The December Crude p&f chart moved to $16.30 before heading south today. Twice in June the December chart reversed at the $16.20 - $16.30 level so there's precedent for supply coming in at this level. The difference between then and now is that the main downtrend line has been broken (BRL) and the chart's RS chart has turned bullish. Two very big differences and the two factors that determine the "main" trend on p&f charts. Unless a drastic move to the upside occurs tomorrow (there would have to be a move to $16.40), today's move to $15.50 will give a p&f sell. First support at $15.30. Next support was the former BRL at $14.40. The BSL provides MAJOR support at $14.30. As long as the chart remains above the BSL, the current uptrend will remain intact. Previous buying support is at the $14.60 -$14.70 level. According to the point & figure chart, this is a pullback within the context of a bullish trend. Your tired friend, Bruce

To: Judy who wrote (8121)	10/2/1998 6:40:00 AM
From: Bwe	Read Replies (2) \| Respond to of 34810

Here we go again with PFE, Judy. One thing you said in a recent post that stuck out in my mind is that it was going to take a change in the fundamental story to cause the stock to break through it's 200 day MA. Well, the 200 day is at $98.38 and the BSL is at $98. A move to $99 would be a High Pole at the Bearish Resistance Line (HPB) which is a more severe pattern. I've written about the stock's previous HPT at $112 in July and the stock has yet to recover past that point. Recall that in order for a trend line break to be considered valid, the move through the BSL must be accompanied by a p&f sell. The HPB would strongly suggest that a p&f sell was an eventuality, however, the stock would have to move to $94 to give the actual sell signal. I expect that PFE's BSL will once again hold up despite this very weak market. The NYSEBP provides a more favorable market backdrop at 30% this time, and the Drug group is also in Bull Alert and in a low pole buy pattern at 36%. S&P futures are currently -10 points and it looks like early weakness will be the order of the day. Using PFE as a proxy for the market in this conjecture, I see PFE opening up down through mid morning and eventually reversing at some point as buyers come in sometime during the afternoon. PFE can then make a higher low amd keep it's BSL intact. By the way, Chartcraft has removed their short term po of 8,400 due to the recent action on the Dow 50 x 150 chart. Downside po is 7,550 and this fits in well with the scenario I envision for today. Good trading, Judy. Bruce