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

To: James Strauss who wrote (8405)	10/7/1998 10:50:00 PM
From: Ms. X	Read Replies (2) \| Respond to of 34812

I posted the other day about Cisco saying things didn't look as bad as they seemed. Well, today the RS reversed to O's which is something the Kid hasn't done since February of '97. That reversal lasted two months or so and was reversed again into X's. As I remember, that was the last time the techs got hammered like they have been recently. Be that as it may - when an RS reverses to negative you must pay attention. The chart has pulled right down to the bullish support line breaking a double bottom at 45. Next support is at 40 and that would be below the BSL. This brings CSCO below June lows and next stop is at January lows and 35. If you own Cisco you have a couple options and should be thinking defensive. Sell calls (as long as you don't mind selling some Cisco possibly in the future), buy puts against the position, use a bounce up to sell partial positions, or if you really like the stock see if it holds support here at the BSL and develops buy signals. (wheew run on sentence). You could also use the next support at 40 for a stop loss if you really like the fundamentals. Many things you can do. The point is to know that CSCO did a big P&F no no today and to make a plan. Don't let it slip away.