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

To: Mr. BSL who wrote (8728)	10/15/1998 11:29:00 PM
From: Dennis J.	Read Replies (2) \| Respond to of 34816

Duke. Thanks for the kind comments. What does column 3 represent? While your concerns are/have-recently-been justified, I think the market has made quite a statement this week. With interest rates on the move, the market seems to be saying a liquidity crisis can be averted -- a fear which probably caused selling at any price -- a "just get me out" attitude. I see the pendulum now beginning to move in the opposite direction. We won't know just how bullish it will get for some time. However, that is the nature of moves for the NYSE/OPTI BP indices -- tracking a full swing in market psychology. If you believe some major attitude change is occurring, seems like you have a couple of options. 1)Wait for the p&f indicators to turn, missing some of the move, but increasing your likelihood of winning trades, or 2) Buying the best and safest stocks now, expecting confirmation later. You probably already have a good shopping list. If not, the 30-40 largest US stocks ought to be candidates -- and they are moving already. For some ideas for more responsive indicators, consider these: 1) McClellan Oscillator: decisionpoint.com 2) Candlestick formations: litwick.com (You will need to register for a trial.) 3) Consider an AIQ trial. Preston, Les Horowitz and myself use it. Many easy-to-use timing indicators. Thanks again. Dennis

To: Mr. BSL who wrote (8728)	10/16/1998 5:37:00 PM
From: Bwe	Read Replies (2) \| Respond to of 34816

Dick, Chartcraft has taken work done by the Cabot Market Letter on new 52 week lows and has included this "Two Second Indicator" in the indicators they look at to judge the markets health. Cabot has found that below 40 daily new lows on the NYSE signals a healthy market. When the market is healthy, Cabot's found that the number of daily new lows will stay under 40. The market gives off a danger signal when the market is hitting peaks and simultaneously, the number of daily new lows is exceeding 40. When the "Two Second Indicator" shows 5 consecutive days of readings over 40, a warning signal is flashed and defensive action should be taken. I don't think this market has seen less than 40 new lows on the NYSE for any number of consecutive days since late April. This is just off the top of my head, though I believe I'm right. The market will signal good health once again, according to this indicator, after a retest of market lows (such as the one we've recently had) and at least 4 days of readings of fewer than 40 new lows while the market is advancing. Like Chartcraft, I've found this indicator to be very reliable. FWIW. Bruce