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

To: MileHigh who wrote (8647)	10/11/1998 1:20:00 PM
From: Judy	Respond to of 34816

Milehigh, Unfortunately P&F charts do not correlate with external events and news that RMBS is most sensitive to, nor with other fundamental events. The previous buy signal for RMBS indicated that at that particular juncture buying was dominating selling in the stock, and the strength looked likely to be sustainable given how the market and sector indicators had lined up. Since then the market and sector indicators had reversed back down and selling is now predominant in the stock vs buying. Hence on any long trade in RMBS, one should take precaution. Not to explain for Jan, but that is my sense of what P&F was saying. P&F provides a secondary confirmatory set of indicators for me, and as Bruce has said in an elegant post, quantifies the risk of the overall context so that one is better prepared to manage the risks. From my trading perspective, RMBS was a good trading long as it bounces off the 200-day ema at 50ish. The risk/reward ratio was worthy of a long trade, given that RMBS rides on the coattails of INTC earnings and developments, along with the recent AMD license news. But I'd expect this to be the last bounce since traders will be selling RMBS into the news at a critical market juncture. With the help of the market, I'd expect RMBS to see the low 40's again.

To: MileHigh who wrote (8647)	10/11/1998 7:19:00 PM
From: Ms. X	Read Replies (3) \| Respond to of 34816

Yes, you are correct. It then broke a triple bottom during the fall. When I said "at market" it was holding support. This is why I also said to watch the charts and not rely on me to keep up on each of the stocks. This was part of my very long disclaimer. When the market is as volatile as it has been, you have to be diligent with your charting. RMBS is still above the trend line and will be volatile. Breaking a triple bottom is a big sell signal. RMBS is for traders. I trade it and have it currently in a trade account but I'd still say "watch out" to those that aren't used to the kind of volatility that RMBS presents. Jan I am